Birla Corp Q2 profit surges 5-fold to Rs 88 crore on higher realisations

Birla Corporation reported over five-fold jump in consolidated net profit at Rs 88.34 crore for the quarter ended September 30, 2019, compared to Rs 16.29 crore posted in the corresponding period last fiscal.

Company officials attributed the growth in net profit to multiple factors, including higher realisation from sale of premium and blended cement and cost rationalisation despite a slowdown in the core sector.

Revenue from operation during the quarter under review stood at Rs 1,626.86 crore as against Rs 1,464.52 crore in the same period last fiscal, it added. Realisation per tonne grew by 6.1% year-on-year to Rs 4,815 (Rs 4,537), while EBITDA per tonne during the quarter under consideration jumped 54% to Rs 956 (Rs 621).


Birla Corporation and its subsidiary, RCCPL (the erstwhile Reliance Cement Company Private Ltd), have 10 cement plants spread across the country with an annual installed capacity of 15.5 million tonne. A 3.9 mtpa cement plant is under construction at Mukutban, Maharashtra.

“Despite an extended monsoon and depressed demand, the company’s sales by volume during the quarter increased 4.1% year-on-year to 3.2 million tonne,” said a press statement issued by the company.

In the three months till September, Birla Corporation sold 2.65 mt of cement (accounting for 83% of total sales) through the more remunerative trade, or retail channels. Premium cement accounted for 41% of sales through the trade channel, compared to 37% in the same period last year. The share of blended cement in total sales was scaled up to 93% from 87% in the September quarter last year.

The company is optimistic about demand strengthening in the coming months across its core markets in central and northern India, which, in turn, will improve realisation, the release said.