MOSCOW (MRC) -- Chemicals and textiles manufacturer GHCL Ltd on Monday reported a 27.71 percent decline in consolidated net profit to Rs 84.86 crore for the quarter ended September 2020, said Chemweek.
The company had posted a consolidated net profit of Rs 116.84 crore in the July-September period a year ago, GHCL said in a regulatory filing. Revenue from operations dipped 3.47 percent to Rs 806.51 crore as against Rs 835.52 crore in the corresponding period of the previous financial year, it added.
Total expenses stood at Rs 703.84 crore, almost unchanged from Rs 703.18 crore in Q2 FY2019-20. GHCL Managing Director R S Jalan said the company’s businesses are returning towards normal.
"Better consumption patterns, robust improvement in operational efficiencies, cost reduction programs coupled with volume growth have led to improved financial performance,” he said. Revenue from inorganic chemicals segment was down 11.37 percent to Rs 479.90 crore as against Rs 541.50 crore earlier.
Home textiles revenue rose 11.08 percent to Rs 326.61 crore as against Rs 294.02 crore. Shares of GHCL Ltd on Monday settled at Rs 162.95 on BSE, up 3.10 percent from its previous close.
As MRC wrote previously, US chemical volumes are expected to drop nearly 10% this year as global economic activity contracts due to the impacts of COVID-19, according to the American Chemistry Council's (ACC) Mid-Year 2020 Chemical Industry Situation and Outlook. Volumes should recover in 2021 with a return to pre-COVID-19 output levels in the US by the second half of 2021.
MRC