M P Birla group's Birla Corporation posts Rs 56 cr loss in second quarter

M P Birla group flagship company Birla Corporation Ltd posted a loss of Rs 56 cr in second quarter of the current fiscal against a net profit of Rs 86 crore in the same period previous financial year

Don't want to miss the best from Business Standard?

M P Birla group flagship company Birla Corporation Ltd (BCL) posted a loss of Rs 56 crore in the second quarter of the current fiscal against a net profit of Rs 86 crore in the same period previous financial year.

Revenue of the company increased 19.3 per cent at Rs 2042 crore during the second quarter as compared to Rs 1711 crore in the previous similar period, a statement by the primarily cement manufacturing firm said on Tuesday.

The company said that the profitability of BCL during the second quarter was impaired by rising power and fuel costs which could not be passed on to the consumers.

EBITDA, a measure of underlying profitability, of the company in the current second quarter declined 51.6 per cent to Rs 136 crore from Rs 281 crore in the similar previous period of 2021-22.

BCL said that the newly-commissioned Mukutban plant in Maharashtra is yet to stabilise operations and also had a negative impact on profitability.

Sales of the company increased 11.4 per cent at 3.64 million tonnes during the quarter from 3.27 million tonnes in the previous similar period.

The company's jute division registered a cash profit of Rs 13.45 crore during the quarter, as compared to Rs 18 crore in the same previous period.

Wholetime director of BCL Sandip Ghose has been appointed as MD&CEO of the company from January one, 2023.