Birla Corp reported net profit at Rs 26.15 crore

KOLKATA: Birla Corp reported a lower net profit of Rs 26.15 crore in the second-quarter (Q2) ended September 30, 2011, compared to a Rs 68.97 crore net in the earlier corresponding period. The decline in profit follows a marginal 5.10 % rise in Birla Corp’s July-September sales revenue at Rs 578.45 crore (Rs 550.34 crore).

Cash profit dipped to Rs 47.30 crore in the said quarter from Rs 101.75 crore, mainly on account of lower ex-works cement realisations, disruption of operations at Chanderia unit resulting in procurement of clinker at higher cost, and significant increase in the cost of coal. The company also suffered forex fluctuation losses of Rs 13.85 crore during the said quarter.

The board recommended an interim dividend of Rs 2.50 for the financial year 2011-12 while approving the second quarter results on Monday.

Birla Corp chairman Harsh V Lodha attributed the Q2 performance to overall economic slowdown, hike in lending rates by banks which depressed cement demand growth from the real estate sector and drop in average capacity utilisation across the country in the first six months when the industry was adding new capacities.

Work on the 1.2 million tonne brownfield expansion at Chanderia and on the 0.6 million tonne grinding capacity addition at Durgapur is progressing as planned. Once completed, the effective annual capacity will stand enhanced to about 9.30 million tonne within the financial year 2011-12.