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.
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