Birla Corporation Reports 71% EBITDA Growth in September Quarter
Filing Summary
Birla Corporation Limited reported a 71% increase in consolidated EBITDA for the September quarter, reaching Rs 332 crore. The company achieved a consolidated net profit of Rs 90 crore, reversing a loss of Rs 25 crore from the previous year. Revenue grew by 13% to Rs 2,233 crore, driven by a 7% increase in cement sales volume to 4.2 million tons. The company also reported improvements in its Jute Division, with a cash profit of Rs 5 crore. Renewable power usage increased, accounting for 30% of the Cement Division’s power consumption.
Birla Corporation Limited announced a significant financial performance for the September quarter, with a consolidated EBITDA increase of 71% to Rs 332 crore. The company reported a consolidated net profit of Rs 90 crore, contrasting with a loss of Rs 25 crore in the same period last year. Consolidated revenue for the quarter was Rs 2,233 crore, marking a 13% year-on-year growth. Cement sales volume rose by 7% to 4.2 million tons, and the Jute Division showed improved profitability.
The company’s financial performance was supported by a 13% increase in revenue, reaching Rs 2,233 crore. EBITDA per ton for the Cement Division rose to Rs 712, a 54% year-on-year increase. The operating profit margin for the Cement Division expanded to 14.7% from 9.8% a year ago. The Jute Division reported a cash profit of Rs 5 crore, with sales volume increasing by 55% year-on-year to 9,987 metric tons. Revenue from the Jute Division grew by 71% to Rs 132 crore.
Operationally, the company focused on consolidating its market share in key markets, achieving a 7% growth in cement sales volume. Premium cement accounted for 60% of total sales through the trade channel. The company increased its use of renewable power, which accounted for 30% of the Cement Division’s total power consumption, up from 25% in the previous year. Agreements were signed to source additional renewable power, including 6 MW of wind-solar hybrid power at the Chanderia plant and 6.98 MW at the Durgapur unit.
During the quarter, the company faced operational challenges, including unplanned shutdowns and sub-optimal kiln performance, impacting clinker production. Despite these challenges, the company managed to reduce operating costs (excluding interest) by 2% compared to the previous year. The company also reported a 3% improvement in realization per ton from cement sales, reaching Rs 4,845.
The company’s management anticipates a revival in cement demand in the upcoming months, driven by government infrastructure spending. The company expects a year-on-year volume growth of 4-5% in the December quarter. The company also noted that the reduction in GST led to a significant price correction in the non-trade segment.
Birla Corporation Limited, the flagship company of the MP Birla Group, was incorporated in 1919. It operates in the cement and jute goods sectors, with 10 cement plants across eight locations in India and an annual installed capacity of 20 million tons. The company produces a range of cement products under the MP Birla Cement brand and also sells construction chemicals and wall putty.