Birla Corporation Limited made Rs 24.86 billion in total revenue in the April–June quarter, which is 13% more than the same time last year. Its net profit jumped 264% to Rs 1.2 billion.
The company sold 4.79 million tonnes of cement, up 9% from last year’s 4.38 million tonnes. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) went up 38% to Rs 3.79 billion, thanks to higher cement sales, lower costs, and better performance in its jute business.
Cement demand was strong in western and eastern India, but weaker in central India due to early rains and lower prices. Average cement selling price improved slightly to Rs 4,858 per tonne.
The cement business earned an EBITDA of Rs 3.64 billion, which is 34% higher than last year. Profit per tonne rose 19% to Rs 715. The profit margin also increased from 12.5% to 14.7%.
However, long maintenance shutdowns reduced clinker production by 17% to 2.44 million tonnes, but the company partly made up for it by buying clinker from others.
To keep profits and market share strong, Birla Corp focused more on premium and blended cement instead of ordinary cement.
- The Perfect Plus brand grew by 19% in sales.
- Unique Plus grew by 37%.
- Premium products made up 58% of trade sales, which helped profits.
- Blended cement made up 89% of total sales, up from 84% last year.
Region-wise, the eastern region saw the highest sales growth at 18%, followed by 15% in the west, and 7–8% in central and northern India.
West Bengal sales grew 37% and Rajasthan sales grew 15%.
The company saved money as power and fuel costs fell by 8.4% to Rs 933 per tonne. Use of green (renewable) power increased to 26.9% of total energy.
Managing Director and CEO Sandip Ghose said the quick growth of the Mukutban plant and efficient use of the Chanderia expansion will help the company grow further, supported by new projects and expansions.
