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Birla Corporation Q2 results: Firm reports net loss of Rs 25.19 crore

The company attributed the loss to sluggish cement demand during the traditionally weak monsoon quarter, with prices plummeting to record lows in all key markets

Birla Corporation

Birla Corporation

BS Reporter Kolkata

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M P Birla Group flagship Birla Corporation recorded a consolidated net loss of Rs 25.19 crore in the July-September quarter (Q2 FY25), compared to a net profit of Rs 58.37 crore in the year-ago period.
 
The company attributed the loss to sluggish cement demand during the traditionally weak monsoon quarter, with prices plummeting to record lows in all key markets.
 
The company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) per tonne from cement sales for the September quarter stood at Rs 461, compared to Rs 683 in the same period last year. The cement division’s EBITDA margin for the September quarter was 9.8 per cent, reflecting a contraction of around 300 basis points from a year ago.
 
 
Consolidated revenue stood at Rs 1,969.78 crore, down by 14.79 per cent year-on-year (Y-o-Y). Cement sales volume during the September quarter was 3.97 million tonnes (mt), down by 5 per cent Y-o-Y.
 
The company cited extended monsoons, floods, and a slow pick-up in government demand as the main reasons for the unusually weak demand.
 
The jute division was also impacted by declining orders both domestically and internationally. It reported a cash loss of Rs 2 crore for the September quarter, compared to a cash profit of Rs 4 crore a year ago.
 
Looking ahead to the December quarter, the company said it was "cautiously optimistic." With a moderate increase in prices and a visible uptick in demand, Birla Corporation expects the cement industry to recover the losses of the last two quarters and deliver a "buoyant" performance in Q4 of the current financial year.
 

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First Published: Oct 23 2024 | 9:02 PM IST

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