GHCL, India’s leading chemical and textile company, announced its financial results for the third quarter of financial year 2020-21. Commenting on the financial performance, RS Jalan, Managing Director, GHCL said, “We have been able to maintain our profits as compared to the corresponding quarter last year despite the challenging market scenario. For the nine months period of the current fiscal, we have achieved higher profits by 35 per cent as compared to the corresponding period of the last fiscal.
During the third quarter of FY20 a lower demand growth and oversupply situation in the inorganic chemicals business has impacted realisation by about 7 per cent which has resulted in a margin drop by about 3.4 per cent compared to the corresponding quarter last year. In textiles segment, an impact of Rs 15 crore due to retrospective withdrawal of MEIS of 4 per cent in Textiles exports has impacted our bottom line by 2 per cent. Also, there is certain amount of margin pressure in spinning due to weakness in domestic spinning industry. Despite these challenges our net profit has been maintained due to our process efficiencies, increased focus on customer serviceability and lower corporate tax.
We are happy to announce the Buyback of company shares amounting to Rs 60 crore which is in line with our philosophy of value creation for our stakeholders.â€Â
Financial performance (Quarterly)
Q3FY20 v/s Q3FY19 (standalone based)
• Net revenue for Q3FY20 is down by 4 per cent to Rs 843 crore as compared to Rs 875 crore in the corresponding quarter ended December 31, 2019
• EBIDTA down by 11 per cent to Rs 186 crore as compared to Rs 210 crore in the corresponding quarter previous year
• Net profit (PAT) maintained at Rs 101 crore as compared to Rs 102 crore in the corresponding quarter in the previous year, despite exceptional expense around Rs 10 crore.
Business segments (Q3FY20 VS Q3FY19)
• Inorganics chemicals division’s revenue is Rs 549 crore in Q3FY20 as compared to Rs 551 crore in Q3FY19.
• Home textiles business revenue is lower by 9 per cent to Rs 294 crore in Q3FY20 as compared to Rs 324 crore in Q3FY19.