Birla reports 13% rise in revenues, sees net loss narrow in 3QFY16-17

Birla reports 13% rise in revenues, sees net loss narrow in 3QFY16-17
12 February 2018

Birla Corp reported a consolidated net loss of INR-218.4m (US$-3.4m) for the quarter ended 31 December 2017, when compared to INR-412.9m in the equivalent period a year ago.

Revenue from its operations was INR13.893bn, up 12.7 per cent YoY from INR12.324bn in the 3QFY16-17.

EBITDA increased 7.9 per cent YoY from INR1.417bn to INR1.528bn in the quarter ending 31 December 2017.

The company attributed the 3Q loss to the “non-availability of railway rakes, as these were diverted for carrrying coal to power plants. This disrupted not only supply of coal but also transportation of clinker to the grinding units and cement to rail-fed destinations, especially in the profitable Central zone markets.”

Overall the company’s transport costs increased due to the steep rise in diesel prices that was partly off-set by logistics innovations. Fuel costs went up by 25 per cent as coal and petcoke prices rose and linkage coal was not available.

The results include the financials of Reliance Cement Co Pvt Ltd (RCCPL), a wholly-owned materials subsidiary Birla Cordp.

Cement output increased 22.1 per cent to 3.062Mt in the October-December quarter, up from 2.508Mt the previous year’s 3Q.

"The operations recorded all-round improvement in the performance of the company in a challenging environment, with abnormal pressure on costs and prices in the North markets," the company statement said, adding the operations of RCCPL had stabilised.

Published under Cement News