INDIA: Grasim viscose staple fibre profits slide in Q3
Aditya Birla subsidiary Grasim Industries saw its viscose staple fibre and wood pulp profits slide during the third quarter as it admitted market conditions for the textile industry, the key consumer of its viscose staple fibre (VSF), remained challenging.
It said this was compounded by surplus VSF capacity in China, and depressed cotton prices.
Over the quarter, sales volumes were sustained at 78,579 tons. However, over the nine month period, volumes have grown by 14%, but global VSF prices declined by 14% compared to the third quarter of last year, which has led to pressure on margins.
Viscose staple fibre and wood pulp operating profit declined to INR1.14bn (US$21.4m) from INR270.44bn in the same period of the prior year. Revenue rose to INR13.08bn from INR12.47bn in the prior year period.
Overall net profit at the division fell to INR1.97bn from INR2.74bn in the prior year period. Revenue fell to INR12.2bn from 12.26 bn in the prior year period.
- Marks & Spencer to extend mobile phone monitoring
- China tightens on corporate social responsibility
- Outdoor industry's future must be more inclusive
- Factoring: a lifeline for apparel suppliers?
- Responsible apparel sourcing requires teamwork
- Adidas "Reebok sale" would be admittance of defeat
- H&M and The North Face commit to responsible down
- Bangladesh taps factory inspectors ahead of review
- UPDATE: A&F appoints Horowitz to head Hollister
- Coats to open new zip factory in Bangladesh
- Ethiopia – the emerging textile and clothing industry
- Apparel Market in China to 2018 - Market Size, Trends, and Forecasts
- Wool in the 21st Century: new prospects for a familiar fibre
- Global market review of denim and jeanswear – forecasts to 2020
- Prospects for the Textile and Clothing Industry in Vietnam