GHCL registers 48% yoy growth in Q3 PAT to Rs163cr; Stock jumps 1%

28 Jan 2022 , 11:41 AM

GHCL Limited has announced its financial results for Q3FY22.

Q3FY22 VS Q3 FY 21 (Standalone Performance)

• Net Revenue from continued operations for Q3FY22 grew by 42% to Rs1,006cr as compared to Rs709cr in the corresponding quarter ended Dec 31, 2020
• EBIDTA from continued operations grew by 38% to Rs251cr as compared to Rs182cr in the corresponding quarter last year
• Net Profit (PAT) including discontinued operations grew by 48% to Rs163cr as against Rs111cr in the corresponding quarter last fiscal

Business Segments (Q3FY22 VS Q3FY21)

• Inorganics Chemicals division’s revenue grew by 45% to Rs765cr in Q3 FY22 as compared to Rs528cr in the corresponding quarter in FY21
• Textiles business revenue from continued operations grew by 34% to Rs241cr in Q3FY 22 as compared to Rs180cr in the corresponding quarter in FY 21

Development on Demerger of Textile Business

• Our earlier scheme of demerger has been withdrawn post the sale of home textile business. We have filed a fresh scheme of demerger of spinning businesses. We expect this new scheme to be completed by around September 2022, said Company in a filing.

Commenting on the financial performance, R S Jalan, Managing Director, GHCL said, “Following easing of lockdown restrictions and improving macro trends, we witnessed enhanced traction across industries, almost back to pre-pandemic levels. Moreover, we observed sequential improvement during the quarter supported by favorable demand supply dynamics backed by positive pricing scenario.

In the Inorganic Chemical segment, we reported solid performance momentum with 12% volume growth in Soda Ash in Q3 of FY22 along with healthy realisation gains backed by strong demand from key end user industries. Spinning segment continued to do well, driven by higher demand off take and firm yarn prices. Our focus on value-added products is yielding profitability gains on a higher base.

On a strategic note, we have proposed to divest our home textile business, while retaining the highly profitable spinning business. The divestment proceeds will be prudently utilized across growth initiatives outlined in both Chemicals and Spinning Businesses. On the other hand, GHCL is continuing with its objective of having separate entities for each business verticals with a limited change that instead of entire Textiles Business, only Spinning Division of GHCL is now proposed to be demerged to the GHCL Textiles Limited.

Overall, we are very well poised to capitalize on the emerging opportunities across our businesses.”

At around 11:40 AM, GHCL was trading at Rs450.35 apiece up by Rs5.25 or 1.18% on the BSE.