GHCL Ltd Q2FY23 net profit up 166% at Rs293 crore on 4-fold surge in operating profits from inorganic chemicals

2 Nov 2022 , 11:32 AM

GHCL Ltd reported 72.03% growth in total revenues for the September 2022 quarter on consolidated basis at Rs1,381 crore. Revenue were up by 1.16% in sequential terms.

For Q2FY23, the revenues the inorganic chemicals verticals more than doubled to Rs1,124 crore while the revenues from the textiles business were also 10.7% yoy at Rs258 crore.

Net cash from operations got sharply impacted in the first half of the year due to a sharp spike in trade receivables and capital locked up in inventories in the quarter.

During the year, the company had hived off its home textiles business to Indo Count Industries Limited.

The net profits for the quarter surged by 166% at Rs292.56 crore on a yoy basis but the profits were lower on a sequential basis due to exceptional gains in the sequential quarter of Rs64 crore from the discontinued operations of the home textiles business that was sold to Indo Count Industries.

GHCL saw the operating profits of the inorganic chemicals business grow 4-fold on a yoy basis while the profits from the textiles business actually dipped over last year due to higher input costs.

Net Margins were at 21.18% in Q2FY23 compared to 13.70% in Q2FY22 and net margins at 26.02% in Q1FY23 quarter on exceptional gains.

Financial highlights for Sep-22 compared yoy and sequentially

	GHCL Ltd
Rs in Crore	Sep-22	Sep-21	YOY	Jun-22	QOQ
Total Income (Rs cr)	₹ 1,381.09	₹ 802.83	72.03%	₹ 1,365.21	1.16%
Net Profit (Rs cr)	₹ 292.56	₹ 109.95	166.08%	₹ 355.25	-17.65%
Diluted EPS (Rs)	₹ 30.58	₹ 11.51		₹ 37.18
Net Margins	21.18%	13.70%		26.02%