BENGALURU (Reuters) – Aditya Birla Group-owned Grasim Industries reported a smaller-than-expected fall in third-quarter profit on Thursday, as strong viscose business outweighed decline in its chemicals segment.
The company’s standalone net profit fell more than 8% from a year earlier to 2.36 billion rupees ($28.4 million) in the three months ended Dec. 31, but stayed above analysts’ expectations of 2.19 billion rupees. This was Grasim’s sixth consecutive quarter of a profit decline.
Its standalone profit does not include the results of its units such as UltraTech Cement and Aditya Birla Capital.
Revenue from the mainstay viscose fibre and yarn business rose – for the first time in five quarters – to 37.15 billion rupees, about 17% higher from a year earlier.
A 34% rise in sales volume of the key textile product outpaced lower prices, helping the segment to contribute 58% of the total revenue.
The company’s total revenue inched up 3.3% to 64 billion rupees.
Meanwhile, a 36% year-on-year price drop of caustic soda – one of the chemicals that Grasim makes – dragged down revenue at its chemicals segment by nearly 23%.
Shares of Grasim ended 2.6% lower ahead of results.
($1 = 82.9742 Indian rupees)
(Reporting by Hritam Mukherjee in Bengaluru; Editing by Krishna Chandra Eluri)
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