India's Grasim's consolidated revenue rises 25% YoY in FY22

Grasim’s viscose staple fibre (VSF) business reported sales volume of 179KT in Q4 FY22, up 22 per cent YoY, with strong mix of VAP at 25 per cent (Q4 FY22). The recently commissioned 600 TPD brownfield plant at Vilayat contributed close to 32KT of sales volume during the quarter and operated at 83 per cent capacity utilisation in March 2022, the company said in a statement.

The global demand for textile products was marginally muted with COVID-related restrictions imposed by China and the ongoing Russia-Ukraine war. Chinese fibre and yarn industry maintained steady operating rates during Q4 FY22. China VSF prices weakened sequentially owing to the spread of Omicron. VSF prices averaged lower at RMB 12,903 in Q4 FY22 compared to RMB 13,637 in Q3 FY22. The cotton prices have been increasing consistently, widening the price gap with VSF which should likely give impetus to VSF prices once COVID subsides, and demand improves in China.

The viscose filament yarn (VFY) business recorded a volume growth of 9 per cent YoY. Higher input and fixed cost in Q4 FY22 impacted financial performance.

The board of directors of Grasim has recommended a dividend of ₹5 per equity share for the year ended March 31, 2022, and a special dividend of ₹5 per equity share, taking the total dividend to ₹10 per equity share. The total outflow on account of the dividend would be ₹658 crore.

The VSF business has taken the target to achieve net zero carbon emissions across all its operations by 2040. The company also targets to reduce its greenhouse gas (GHG) emissions intensity to half by 2030.

Fibre2Fashion News Desk (KD)