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Grasim's Q2 net revenue rise 63 per cent

Grasim, a part of Aditya Birla Group, has posted consolidated net revenue of Rs 13,646 crore for the quarter ended September 30, 2017. This is an increase of 63 per cent over Rs 8,386 crore in second quarter of previous fiscal, which did not include the erstwhile Aditya Birla Nuvo Limited (ABNL).

During the quarter, VSF prices remained firm globally driven by tighter supply ex-China on account of output curtailment due to environmental factors. The domestic VSF market saw restocking of the inventory leading to increase in sales volume by 5 per cent year-on-year. The viscose business EBITDA for the quarter was at Rs 468 crore on the back of higher realisation and improved operational efficiencies. Results for the quarter also include revenue of Rs 200 crore and EBITDA of Rs 61 crore of VFY business, now part of Grasim post ABNL merger.

Grasim has recently stated its VSF business will continue to focus on expanding the market in India by partnering textile value chain, achieving better customer connect through Brand Liva and enriching the product mix through a larger share of specialty fibre.

Domestic caustic soda prices witnessed an uptrend driven by healthy demand and supply constraints in the global market arising from environmental considerations in China and weather-related disruption in the US. Production from Veraval plant (erstwhile ABNL) contributed to 7 per cent year-on-year growth in caustic soda sales volume during the quarter.