Birla Corp Q3 net profit up 87% sequentially to `109 cr

Firm’s consolidated revenue for 3rd quarter at Rs 2,328 cr represents a 15% growth over last year

Birla Corporation Limited reported a consolidated net profit of Rs 109 crore for Q3 FY24, up 87 per cent sequentially, as the Company managed to ramp up sales and scale back operating expenses. The Company reported EBITDA for the Q3 FY24 at Rs 395 crore and cash profit at Rs 298 crore representing a year-on-year growth of 160 per cent and 359 per cent, respectively.

Total cost per ton of cement production for the Q3 FY24 at Rs 4,375 represents a decline of 8 per cent year-on-year and 3 per cent sequentially. With several internal cost optimization measures starting to deliver results. The Company’s operating profit margin from cement for the third quarter of FY24 was 17 per cent and for the ninemonth period, 13 per cent.

In the March quarter of the last fiscal year, Birla Corporation had launched Project Shikhar, a multi-pronged drive to improve operating efficiency and optimize costs. It has led to various nuts-and-bolts tweaking, and so far resulted in savings of at least Rs 55 per ton in cement production cost for the quarter.

The Company’s consolidated revenue for Q3 FY24 at Rs 2,328 crore represents a 15 per cent growth over last year, as cement dispatches from Mukutban were steadily scaled up and sales of premium products expanded in key markets.

Mukutban continued its scaling-up journey on track and clocked positive EBITDA through each month of the Q3 FY24. This significantly boosted the Company’s profitability.

Beating projections, Mukutban crossed the 200,000-ton mark in sales and dispatches in January 2024 (earlier expected to be achieved in March 2024).

Commenting on the Company’s performance, the Chairman, Harsh V Lodha, said: “The results are a reflection of our focus on improving operating efficiency in all parameters. We are firmly focused on reducing costs, improving capacity utilization and realisation through a balanced brand portfolio, with equal emphasis on premium and value segments, geo-mix and go-to-market supply chain optimization, and accelerated ramp-up of Mukutban. Having established a strong base across North India, the Company is now ready for the next phase of its journey to become a 30- million-ton player by 2030. At the same time, the Company remains committed to Sustainable Development Goals of increasing share of renewable energy. We have one of the highest share of green and blended cement, which accounts for more than 80 per cent of our cement sales.”

Cement sales by volume at 4.2 million tons were up 13.2 per cent year-on-year. The Company achieved a capacity utilization of 85 per cent for Q3 FY24 compared to 74 per cent a year earlier and 83 per cent in the September quarter.

The firm reported EBITDA for Q3 at Rs 395 cr & cash profit at Rs 298 cr representing yearon-year growth of 160% and 359%, respectively