GHCL, India’s leading chemical and textile company, announced its financial results for Q2 FY21. Commenting on the financial performance, RS Jalan, Managing Director, GHCL, said, “As the COVID-19 impact continues, global macroeconomic environment remains volatile due to a resurgence in reported cases. In India, since the easing of the lockdown, economic activity has started to recover. Our businesses too are returning towards normal. Better consumption patterns, robust improvement in operational efficiencies, cost reduction programmes coupled with volume growth have led to improved financial performance. We appreciate the trust of our stakeholders and thank our employees for their unrelenting dedication and collaborative spirit during these unprecedented times.”
Also read: GHCL reports 50% fall in net revenue for Q1FY21
Q2 FY21 VS Q2 FY20 (Standalone Performance)
- Net Revenue for Q2 FY21 is at Rs 779 crore as compared to Rs ÂÂÂÂÂÂÂÂ826 crore in the corresponding quarter ended September 30, 2019
- EBIDTA is at Rs 162 Crores as compared to Rs 203 crore in the corresponding quarter last year
- Net Profit (PAT) is at Rs 78 crore as against Rs 122 crore in the second quarter last fiscal
However, we have achieved the robust performance as compared to preceding quarter, where revenue is up by 77 per cent from Rs 440 crore and EBITDA is up by 93 per cent from Rs 84 crore. “We have repaid debt of Rs 198 crore in this quarter and reduced finance costs by 20%.”
Business Segments (Q2FY21 VS Q2FY20)
- Inorganics chemicals division’s revenue is Rs 482 crore in Q2 FY21 as compared to Rs 542 crore in the corresponding quarter in FY20.
- Home textiles business revenue ÂÂÂÂÂÂÂÂis at Rs 297 crore in Q2FY 21 as compared to Rs 283 crore in the corresponding quarter in FY20.
GHCL has established itself as a well-diversified group with an ascertained footprint in chemicals, textiles and consumer products segment. In chemicals, the company mainly manufactures Soda Ash (Anhydrous Sodium Carbonate) that is a major raw material for detergents and glass industries and Sodium Bicarbonate (baking soda). Its textiles operation is an integrated set up, which commences right from spinning of fiber (yarn), weaving, dyeing, printing of the finished products, like sheets and duvets, primarily exported worldwide. Consumer Products operation is another business for GHCL where it is manufacturing and selling edible salt, industrial grade salt and markets jujube honey, spices and blended spices in the country under the brand name of i-Flo.