Riding on the back of higher realisation from sale of premium and blended cement and cost rationalisation, Birla Corporation Ltd posted a 450 per cent rise in net profit to ₹88 crore for the quarter ended September 30, 2019, as compared with ₹16 crore same period last year.

Revenues grew by around 11 per cent to ₹1,647 crore from ₹1,485 crore. The average realisation per tonne increased by over 6 per cent to ₹4,815 crore (₹4,537 crore).

The EBITDA margin during the quarter under consideration improved to 20.15 per cent from 13.9 per cent same period last year.

The company’s capacity utilisation was close to 83 per cent, which, on a sequential basis, is down from 98 per cent during the quarter ended June 30, 2019.

Birla Corporation and its subsidiary, RCCPL Private Ltd (the erstwhile Reliance Cement Company Private Ltd), have 10 cement plants spread across the country with an annual installed capacity of 15.5 mt.

“Despite an extended monsoon and depressed demand, the company’s sales by volume during the quarter increased 4.1 per cent year-on-year to 3.2 million tonnes,” said a press statement issued by the company.

Improved realisation

In the three months till September, Birla Corporation sold 2.65 mt of cement (accounting for 83 per cent of total sales) through the more remunerative trade, or retail channels.

Premium cement accounted for 41 per cent of sales through the trade channel, compared to 37 per cent in the same period last year. The share of blended cement in total sales was scaled up to 93 per cent from 87 per cent in the September quarter last year.

The company is optimistic about demand strengthening in the coming months across its core markets in central and northern India, which, in turn, will improve realisation, the release said.

The company’s scrip closed at ₹624.75, up by 2.33 per cent on the BSE on Tuesday.

comment COMMENT NOW