Birla Corp Q3 results: Net profit jumps 82% to Rs 148 crore

Birla Corp Q3 results: Net profit jumps 82% to Rs 148 crore

Mumbai: Birla Corporation Ltd, the flagship Company of the MP Birla Group’s net profit jumped 82.1% year-on-year to Rs 148.42 crore on the back of a 3.2% growth in sales by volume, aggressive cost rationalization and higher sales of premium products.

“Birla Corporation Limited’s sales by volume for the December quarter rose 3.2% to 3.55 million tonnes (mt), boosting capacity utilization to 92% from 88% in the same period last year. Its capacity utilization for the December quarter was one of the highest in the industry,” the company said in a statement.

The company’s revenue for the December quarter at Rs 1,822.82 crore represents a 5% growth, while earnings before interest, depreciation, taxes and amortization at Rs 375.94 crore is up 19.4% over the same period last year. Cash profit for the December quarter at Rs 302.99 crore is up 39.5% year-on-year.

In the December quarter, the company witnessed an increase in raw material, power and fuel costs. Also, cement prices remained relatively weaker in the quarter compared to the preceding three months, and together they led to softening of Ebitda per ton on a sequential basis.

“Ebitda per tonne for the December quarter grew 16.7% year-on-year to Rs 992 from Rs 850, aided by higher volumes, improved operating efficiencies and cost rationalization,” the company said.

Birla Corporation Limited is expanding production capacity at multiple locations with the aim of scaling it up to 25 mt by 2025.

“Construction of the company’s 3.9 mt cement plant at Mukutban in Maharashtra is progressing satisfactorily and the unit is expected to be commissioned in the third quarter of the next fiscal year,” the company’s media statement said.

The company is planning to hook up incremental clinker capacity at Chanderia in Rajasthan in the first quarter of the next fiscal year. The company’s expansion plans for Kundanganj, which were put on hold in view of uncertainties over cement demand, have been revived.

Birla Corporation also has a jute division registered a cash profit per ton in the December quarter going up to Rs 9,709 from Rs 7,371 in the same period last year, a growth of 31.7%.

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