Birla Corporation March quarter net profit up 28% on higher sales

Revenues from operations stood at Rs 2,146 crore, up 24.9% YOY and 17.7% over the previous quarter

Birla Corporation Limited on Wednesday reported a net profit of Rs 249.33 crore in the March quarter, up 28 per cent from Rs 194.73 crore in the same period last year and 67.9 per cent from Rs 148.42 crore in the previous quarter.

Revenues from operations stood at Rs 2,146.12 crore, up 24.9 per cent over the previous year and 17.7 per cent over the previous quarter.

The company turned in its highest ever full-year net profit of Rs 630.14 crore, up 24.7 per cent over the previous year. However, due to the shortfall in sales in the first quarter, revenue for the full year fell 1.6 per cent year-on-year to Rs 6,885.36 crore. Sales by volume for FY20-21 declined 1.8 per cent to 13.39 million tonnes (mt) from 13.64 mt in the previous year.

The company’s March quarter EBITDA at Rs 405.53 crore and cash profit at Rs 338.16 crore were also the highest ever. The company has declared a dividend of 100 per cent for FY20-21.

The company made up for its loss in production and sales at the beginning of the financial year by aggressively rationalising costs, it said. Finance cost was pared by Rs 91.39 crore, or by 23.6 per cent, to Rs 296.28 crore. The company also benefited from the better than expected recovery in cement demand from the second quarter onwards, especially in the rural sector.