Birla Corporation's December quarter net profit jumps 82 per cent

Birla Corporation recorded an 82.1 per cent (year-on-year) jump in net profit in the December quarter to Rs 148.42 crore on the back of a 3.2 per cent growth in sales by volume, cost rationalization and higher sales of premium products.

The company’s revenue for the December quarter at Rs 1,822.82 crore represented a five per cent growth, while EBITDA at Rs 375.94 crore was up 19.4 per cent over the same period last year. Cash profit for the December quarter at Rs 302.99 crore was up 39.5 per cent year-on-year.

Birla Corporation Limited’s sales by volume for the December quarter rose 3.2 per cent to 3.55 million tonnes (mt), boosting capacity utilization to 92 per cent from 88 per cent in the same period last year.

The company said, capacity utilization for the December quarter was one of the highest in the industry and despite severe disruptions in the first quarter owing to the Covid 19 pandemic, it managed to boost its profitability.

Net profit for the nine months till December has grown 22.7 per cent over last year to Rs 380.81 crore. This was achieved through a mix of cost rationalization and improved operating efficiency, aided by a modest recovery in cement demand.

EBITDA margin of Birla Corporation Limited’s cement division grew to 22 per cent for the nine months till December from 20 per cent last year. For the December quarter, the cement division’s EBITDA margin was at 21 per cent, against 18 per cent in the same period last year.

The company, however, faced cost pressure in the December quarter, with an increase in raw material, power and fuel costs. That, coupled with relatively weaker cement prices in the quarter compared to the preceding three months, led to softening of EBITDA per tonne on a sequential basis.

However, EBITDA per tonne for the December quarter grew 16.7 per cent year-on-year to Rs 992 from Rs 850, on the back of higher volumes, improved operating efficiencies and cost rationalization.