Companies

Birla Corp Q3 profit surges 82% to ₹148 crore

Our Bureau Kolkata | Updated on January 23, 2021

Buoyed by cost rationalisation and higher sales of premium products

Birla Corporation Ltd, the MP Birla Group flagship, reported an over 82 per cent increase in consolidated net profit to ₹148 crore for the third quarter ended December 31, 2020. Net profit in the year-ago-period stood at ₹61 crore.

The increase in net profit came on the back of growth in sales volume for the cement division, aggressive cost rationalisation and higher sales of premium products (for cements), the company said in a release.

Borrowing costs were reduced by close to 8 per cent, YoY, for Q3FY21.

During the quarter under review, total income stood at ₹1,823 crore, a 5 per cent rise year-on-year.

Cement sales stood at 3.55 million tonnes – a 3.2 per cent increase in volume YoY – with capacity utilization being to the tune of 92 per cent, one of the highest in the industry.

“Despite severe disruptions in the first quarter owing to Covid-19, the Company managed to boost its profitability, (with) net profit for the nine month period (April to December) growing by 22.7 per cent YoY,” the company said, adding that “ This was achieved through a mix of cost rationalisation and improved operating efficiency, aided by a modest recovery in cement demand.”

Expansion plans

According to the company release, it is on course to expand its capacity to 25 MT by 2025, up from the existing 15.5 MT.

Construction of Birla Corporation’s 3.9 mt cement plant at Mukutban in Maharashtra “is progressing satisfactorily” and it is expected to be commissioned in the third quarter of FY22.

The company is also planning to “hook-up incremental clinker capacity” at Chanderia in Rajasthan in the first quarter of the next fiscal year.

Expansion plans for Kundanganj (Uttar Pradesh) to the tune of 1.2 mt, which were put on hold in view of uncertainties over cement demand, have now been revived. The plant is expected to be operational in Q1 FY23.

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Published on January 23, 2021
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