Birla Corp Q3 PAT jumps 200% to Rs 81 crore

Birla Corporation on Wednesday reported a 200 % year-on-year jump in net profit to Rs 81 crore in the third-quarter (Q3) ended December 31, 2019. The growth in net profit follows a 10.65 % rise in total income to Rs 1,735 crore in the said quarter over Rs 1,568 crore topline in the corresponding period a year ago.

This was achieved despite muted growth in sales by volume and realization. While total sales by volume for the December quarter grew 7% year-on-year to 3.43 million tons, realization per ton grew 3.49% to Rs 4,712, the company said in a statement issued after the board meeting.

Earnings before interest, tax, depreciation and amortization (EBITDA) for the December quarter at Rs 315 crore was 44% higher year-on-year, while cash profit at Rs 217 crore by 73%. EBITDA per ton for the cement division for the quarter under review grew 44% year-on-year from Rs 589 to Rs 850, while EBITDA margin for the quarter expanded to 18.1% from 13.9% a year earlier.


Though cement prices remained weak in key markets in the December quarter, Birla Corporation was able to increase market share in West Bengal and Bihar by expanding its distribution reach and leveraging cross-branding from multiple plants of its own and its subsidiary, RCCPL Pvt Ltd, the release stated.


“Higher capacity utilization, our continued focus on trade sales, blended cement and premium products helped post a healthy result. We also saved in power and fuel costs as well as optimised logistics costs which yielded substantial savings”, Sandip Ghose, chief operating officer at Birla Corporation said.

During the December quarter, green shoots were visible in the infrastructure sector with demand in the non-trade segment growing faster than the trade segment, the statement added.

Birla Corporation has, through auction, secured two coal mines in Madhya Pradesh — Bikram and Brahampuri. It has also submitted the necessary compliance documents with the union government, completing the first step towards commercial exploitation of the mines.

The company will continue its focus on cost optimization and wider market penetration. Combined with sustained initiatives to improve realization, it plans to scale up sales of premium and blended cements.