Birla Corporation posts 278% jump in Q4 profit

Its turnover, in the period under review, rose by 16.6% at Rs 893 cr

Backed by good growth in sales of both cement and jute, Birla Corporation posted an increase of 278.07 per cent at Rs 94.33 crore in its net profit for the quarter ended June 30, 2016.

The company's net profit during the corresponding quarter of the last fiscal year stood at Rs 24.95 crore.

Its turnover, in the period under review, rose by 16.61 per cent at Rs 893.57 crore as against Rs. 766.27 crore earned during April-June last year.

The company dispatched 21.67 lakh tonnes of cement during the period under review against 19.56 lakh tons during the corresponding period the previous year. It has recorded the highest ever sale of cement at 21.96 lakh tonnes during the quarter.

While suspension of normal mining operations with blasting continues at its Chanderia mines, as per the Supreme Court's Order, the volume of limestone extracted through mechanical mining was at its highest during the period under review. As per the company, the use of pet coke at Chanderia at the power plant there helped in bringing down the power cost. During the same period, the consumption of power there was at an all-time low.

At Satna, increased use of pet coke in one of the kilns brought down the cost of production of clinker by 13 per cent which helped the firm widen its bottomline.