• Q2 profit at viscose staple fibre business up 68% 
  • Division's sales volumes grew 9%
  • Viscose staple fibre production rose 15% year-on-year

Indian fibre maker Grasim Industries has seen second-quarter profit at its viscose staple fibre business, helped by a better performance from its pulp units.

The Aditya Birla subsidiary today (30 October) said profit before interest, depreciation and taxes at the viscose staple fibre division jumped 68% to INR2.69bn (US$44m) in the three months to 30 September, down from INR1.61bn in the same period of last year.

Sales volumes at the viscose staple fibre business grew 9% to 93,025 metric tonnes, led by higher exports. Production increased 15% year-on-year, helped by capacity expansion at its Harihar plant.

The viscose staple fibre industry, Grasim warned, will continue to face pricing pressure given the surplus capacity in China. Capacity addition in China is expected to slowdown because of subnormal returns in the industry, it added.

Overall profit after tax, which includes the company's cement and chemical businesses, reached INR4.5bn during the quarter, down from INR6.2bn last year. Revenue increased to INR68.49bn from INR66.15bn in the prior year period.