Birla Corp reports 127% jump in net profit

Birla Corp reports 127% jump in net profit
07 May 2024

Birla Corp has continued its steady progress of the first three quarters of fiscal 2023-24 to end the year on a high, with record cement sales by volume and a 127 per cent growth in net profit in the March quarter, despite unusually weak market conditions. After steadily ramping up the Mukutban unit, the company’s cement division achieved a capacity utilisation rate of 97 per cent for the March quarter, marking yet another milestone.

Consolidated net profit for the March quarter came in at INR1930m (US$23.11m), representing YoY growth of 127.1 per cent, as power and fuel costs continued to be moderate. Consolidated revenue for the quarter stood at INR26,820m, up 6.8 per cent from the same period last year, even as realisation from cement in the March quarter came under intense pressure and fell 1.6 per cent YoY to INR5178/t.

“Birla Corporation’s performance in fiscal 2023-24 is the result of all-round improvement in performance in all areas of operations,” said Shri Harsh Vardhan Lodha, chairman. “The investment in capacity-building across functional verticals is reflected in the impressive ramp-up of the Mukutban unit, ahead of the guidance given by the company.”

The Board of Birla Corp’s wholly-owned subsidiary, RCCPL Private Ltd, on 2 May 2024, approved an investment of INR4250m to augment the capacity of its Kundanganj unit by 1.4Mt within two years. A third of the proposed investment will come from internal accruals. As cement consumption in India continues to grow, Birla Corp is rolling out its next phase of capacity addition with the aim of increasing cement production to 25Mt by fiscal 2026-27.

Published under Cement News