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139	139	On February 10, 2020; Grasim Industries Limited announced its unaudited financial results for the quarter and Nine months ended 31st December 2019
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141		-Consolidated Revenue for the nine months ended 31st December 2019 stood at `57,724 Cr. recording a growth of 5%. Consolidated PBT at ` 6,387 Cr. recorded a growth of 23% YoY. Revenue and EBITDA for the quarter, however, remained largely flat.
	141	+Consolidated Revenue for the nine months ended 31st December 2019 stood at `57,724 Cr. recording a growth of 5%. Consolidated PBT at ` 6,387 Cr. recorded a growth of 23% YoY. Revenue and EBITDA for the quarter, however, remained largely flat.{{footnote}}https://www.bseindia.com/xml-data/corpfiling/AttachHis/058d9115-fda0-4c29-b7d2-b6949b69a8f2.pdf{{/footnote}}
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143		-[[https:~~/~~/www.bseindia.com/xml-data/corpfiling/AttachHis/058d9115-fda0-4c29-b7d2-b6949b69a8f2.pdf>>url:https://www.bseindia.com/xml-data/corpfiling/AttachHis/058d9115-fda0-4c29-b7d2-b6949b69a8f2.pdf]]
	143	+== Viscose Business ==
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145		-
146		-Viscose Business
147		-
148	148	In the VSF business, production and sales volume recorded an increase of 5% and 3% YoY to 148KT and 138KT respectively. The Net Revenue for the viscose segment (including VFY) stood at `2,194 Cr. and EBITDA for the quarter stood at `256 Cr.
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150	150	This quarter’s profitability was impacted primarily by the drop in the domestic VSF prices, on the back of weakening global prices owing to large supply surplus triggered by new capacity additions in Asia in last one year and global demand slowdown caused by U.S-China trade war. The reduction in the domestic VSF prices was accelerated to counter surge in cheap yarn imports from China/Indonesia which impacted viability of Indian spinners. The domestic VSF prices may witness some improvement in the near term with improving sentiments post phase-1 of US-China trade deal and near-term global supply constraints from China.
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156	156	The 219 KTPA Vilayat Brownfield capacity expansion is progressing as per schedule and expected to be commissioned by FY21.
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	155	+== Chemical Business ==
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159		-Chemical Business
160		-
161	161	The Net Revenue for Q3FY20 stood at `1,362 Cr. and EBITDA stood at `185 Cr. Global caustic soda prices were soft during the quarter. Domestic caustic prices were impacted due to increased domestic capacity, rise in imports and weak demand.
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163		-
164	164	Caustic Soda sales and production volume for Q3FY20 stood at 257KT and 261KT respectively. The speciality chemicals (Value added chlorine product) profitability was impacted by slowdown in demand. The share of EBITDA from Speciality chemicals including Epoxy resins stood at ~~1/3 of Chemical business.
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166		-
167	167	The Caustic Soda capacity expansion projects at Rehla, Vilayat and Balabhadrapuram are at different stages of execution with expansion of specialty chemical products too
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	163	+== Capex Plan ==
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170		-Capex Plan
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172	172	The total capex plan of ~~`7,800 Cr. (at standalone level) is under execution for raising capacities in both the VSF and Chemical businesses, apart from ongoing modernisation capex at various plants. This capital expenditure is expected to be incurred over three years period from FY20-FY22.
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	167	+== Cement Subsidiary - UltraTech ==
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175		-Cement Subsidiary - UltraTech
176		-
177	177	UltraTech reported Consolidated Revenue of `10,354 Cr. and EBITDA of `2,141 Cr. in Q3FY20 up 25%YoY. PAT stood higher at `712 Cr. up 80% YoY. The consolidated sales volume stood at ~~20.90 MTPA.
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179	179	The acquired plants of Century ramped up production touching a capacity utilization of 79% in Dec-19. Brand and operational integration is underway and is expected to reach 84% by Q2FY21.
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183	183	UltraTech Nathdwara Cement Limited is fully integrated with the UltraTech systems and processes. The plants have achieved optimal efficiencies and are PBT accretive.
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	177	+== Financial Services Subsidiary – Aditya Birla Capital Limited (ABCL) ==
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186		-Financial Services Subsidiary – Aditya Birla Capital Limited (ABCL)
187		-
188	188	The Revenue and Net profit after minority interest for Q3FY20 (as reported by ABCL) are at `4,326 Cr. and `250 Cr. up by 14% and 17% respectively.
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190	190	The Overall lending book (NBFC and Housing Finance) stood at `60,123 Cr. (Q3FY20).
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198	198	In the Health Insurance business, Gross written premium increased to `547 Cr. (9MFY20), up 73% YoY.
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	191	+== Outlook ==
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201		-Outlook
202		-
203	203	The VSF business will continue to focus on expanding the market in India by partnering with the textile value chain, achieving better customer connect through its brand LIVA and extension into new categories. VSF continues to be the fastest growing textile fibre globally. The economic standstill in China and improved sentiment post phase-1 of U.S China trade war may lead to some improvement in VSF prices in near term, however the underlying supply-demand imbalance is likely to continue for some time.
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205	205	The Chemical business is under an expansion mode for both chlor-alkali and specialty chemicals. The ongoing expansion projects at different sites and new product lines for specialty chemicals will enable growth of the business. Simultaneously, the business is focusing in reducing cost of power (a key input) by optimizing power mix and increasing share of renewable power.
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211	211	Grasim is incurring capex to increase capacities across its key businesses and is potentially well positioned to leverage the next phase of the economic growth.
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	203	+= References =
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215		-References
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217	217	{{putFootnotes/}}