GHCL net revenue falls 50% in Q1FY21

GHCL net revenue falls 50% in Q1FY21

GHCL Limited, India’s leading chemical and textile company, announced its financial results for Q1FY21. Commenting on the financial performance, RS Jalan, Managing Director, GHCL, said, “As the global COVID crises evolves even further, we are now witnessing a wider impact on economies across the world.

GHCL Limited, India’s leading chemical and textile company, announced its financial results for Q1FY21. Commenting on the financial performance, RS Jalan, Managing Director, GHCL, said, “As the global COVID crises evolves even further, we are now witnessing a wider impact on economies across the world. These are trying and uncertain times and understandably, there is a sense of unease and concern. At GHCL, we continue to be focused and agile, adapting to the new normal. It is heartening to note that operating activities have increased due to a demand uptick in all our business segments. We are hopeful that in the upcoming quarter the utilisation levels will improve further by 10 to 15 per cent across all verticals and we will continue to create value for our stakeholders.”

Q1FY21 v/s Q1 FY20 (standalone performance)

  • Net Revenue for Q1FY21 is at Rs 440 crore as compared to Rs 879 crore in the corresponding quarter ended June 30, 2019
  • EBIDTA is at Rs 84 crore as compared to Rs 222 crore in the corresponding quarter last year
  • Net profit (PAT) is at Rs 17 crore as against Rs 103 crore in the first quarter last fiscal
  • The COVID outbreak has affected the overall business activities of the company resulting in lower operating activity.
  • Business segments (Q1FY21 VS Q1FY20)

  • Inorganics chemicals division’s revenue is Rs 346 crore in Q1 FY21 as compared to Rs 588 crore in the corresponding quarter in FY20
  • Textiles business revenue at Rs 94 crore in Q1FY 21 as compared to Rs 262 crore in the corresponding quarter in FY20
  • Business outlook
    In textiles, Q1FY21 witnessed a slow start due to lockdown restrictions resulting in subdued demand. We believe that the pandemic will result in shifting of supply chain from China to India that will benefit both the Spinning and Home Textiles. Also with the restrictions now easing out, the demand for garments and home furnishings is likely to improve. We expect a quarter on quarter improvement beginning Q2 this year.

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