Birla Corporation Q4 results: Profit up 33% to ₹257 cr; revenue up 7%

After a weak start to FY25, Birla Corp posts strong Q4 profit growth on higher capacity utilisation and announces major expansion to scale cement output to 27.6 mt

M P Birla Group flagship, Birla Corporation, recorded a 32.72 per cent year-on-year (Y-o-Y) rise in consolidated net profit to ₹256.61 crore in the January–March quarter (Q4FY25). In the year-ago period, net profit had stood at ₹193.34 crore.

 

The company attributed the growth to “robust” quarterly production and sales by volume. “This came after three challenging quarters that had affected the entire industry. An uptick in demand and prices during the quarter led to better realisation and a higher capacity utilisation of 105 per cent in the March quarter,” it said in a statement.

 

In Q3FY24, net profit had stood at ₹31.19 crore.

 

 

Consolidated revenue in Q4FY25 stood at ₹2,863.14 crore, up 6.8 per cent from ₹2,680.13 crore in the same period last year. In Q3FY24, revenue was ₹2,272.07 crore.

 

Despite a sharp increase in profit during the March quarter, consolidated revenue for FY25 stood at ₹9,312.40 crore, down 4.4 per cent. Consolidated net profit for the full year was ₹295.22 crore, down 29.8 per cent.

 

The company cited pricing pressure during the first eight months of FY25. For the full year, Birla Corporation’s price realisation was 7 per cent lower, at ₹4,866 per tonne.

 

Cement sales by volume during Q4FY25 grew 8 per cent Y-o-Y to 5.2 million tonnes (mt). For the full year, the company sold 18.1 mt of cement, compared to 17.6 mt in the previous year—an increase of 2.5 per cent.

 

Next phase of growth

 

The board of Birla Corporation Limited, along with its subsidiary RCCPL Private Limited, has approved an investment of ₹4,335 crore to scale up cement production capacity from 20 mt to 27.6 mt by 2028–29. The expansion will include the enhancement of an integrated unit and the construction of three new grinding units.

 

The expanded capacity includes the ongoing expansion at Kundanganj, which is progressing as scheduled, the company said.

 

RCCPL Private Limited will invest ₹2,300 crore in its Maihar (Madhya Pradesh) unit to expand clinker production capacity. The clinker produced at Maihar will supply three new grinding units to be set up in Prayagraj, Gaya, and Aligarh. Birla Corporation and RCCPL have allocated ₹2,035 crore for this phase of the project.

 

Commenting on the developments, Harsh V Lodha, chairman, said, “Our capacity utilisation in central and eastern India is more than 100 per cent. We expect cement demand to grow at a CAGR of 6–7 per cent over the next few years.”

 

“To improve our leadership position in high-growth markets, we are ready for the next phase of growth. The addition of fresh capacity will have a favourable impact on profitability and will reduce lead distances, with grinding units located closer to the market,” he added.