GHCL logs 40% growth in Q2 PAT to Rs109cr; Stock jumps 1.5%

GHCL Ltd, India’s leading Chemical & Textile Company has announced its financial results for Q2/H1 FY22.

Financial Performance (Standalone performance)
Q2 FY22 VS Q2 FY21

• Net Revenue grew by 27% during Q2FY22 to Rs987cr as compared to Rs779cr in the corresponding quarter previous year
• EBIDTA grew by 24% to Rs201cr as compared to Rs162cr in the Q2 FY21
• Net Profit grew by 40% to Rs109cr as compared to Rs78cr in the Q2 FY21

Business Segments (Q2FY22 VS Q2FY21)

• Inorganics Chemicals division’s revenue grew by 19% to Rs572cr in Q2 FY22 as compared to Rs482cr in the Q2 FY21
• Home Textiles business revenue grew by 40% to Rs415cr in Q2FY22 as compared to Rs297cr in the Q2 FY21

Financial Performance (Half Yearly)
H1FY22 VS H1FY21 (Standalone Based)

• Net Revenue for H1FY22 grew by 51% to Rs1,842cr as compared to Rs1,220cr in the corresponding first half ended Sept 30, 2020
• EBIDTA grew by 58% to Rs390cr as compared to Rs246cr in the corresponding first half of FY21
• Net Profit (PAT) grew by 121% to Rs211cr as compared to Rs95cr in the corresponding first half of FY21

Commenting on the financial performance, R S Jalan, Managing Director, GHCL said, “We have demonstrated a robust performance during the quarter under review after navigating through the severe second wave of Covid-19 pandemic. Our performance was bolstered by steep economic recovery across the country validated by sequential uptick in demand cycles and positive pricing scenario. In addition, improved vaccination coverage and a growing sense of normalcy has led to enhanced consumption, especially June onwards.

Our Inorganic Chemicals segment continues to witness strong demand from downstream segments. There is a significant increase in energy and raw material costs. However, with favorable demand scenario we have been able to pass this increase to our customers. We remain on track to further cement our leadership position in Inorganic Chemicals through modular expansions and debottlenecking. That said, our focus on diversifying from the soda-ash business and expanding our product basket remains unabated.

Spinning continues to witness robust growth, with yarn and cotton prices at historic highs, and improving spreads. The home textile business also saw sharp jump in revenues, led by higher sales to US and other export markets. We remain focused on adding new value-added products in this segment to boost our performance.

Going forward, we are confident of generating strong cash flows with healthy balance sheet while delivering sustained earnings performance.”