Birla Corporation reports stellar growth in December quarter with 87% net profit surge
In the latest financial quarter ending December 2023, Birla Corporation Limited, India’s leading cement manufacturer, reported a remarkable 87% sequential increase in consolidated net profit, amounting to Rs 109 crore. This impressive growth is attributed to the company’s successful ramp-up in sales and effective scaling back of operating expenses, underlining its commitment to operational efficiency and cost optimization.
The company’s EBITDA stood at Rs 395 crore, with a cash profit of Rs 298 crore, showcasing year-on-year growth of 160% and 359%, respectively. A significant decline in the total cost per ton of cement production, by 8% year-on-year and 3% sequentially, to Rs 4,375, highlights Birla Corporation’s status as one of the most efficient cement manufacturers in India.
In response to the challenging market dynamics, Birla Corporation launched Project Shikhar in the last fiscal year, focusing on improving operating efficiency and optimizing costs. The project has already yielded savings of Rs 55 per ton in cement production cost for the quarter. Additionally, the company has seen a 15% growth in consolidated revenue for the quarter at Rs 2,328 crore, thanks to the steady scaling up of cement dispatches from Mukutban and the expansion of sales of premium products in key markets.
Birla Corporation Limited Celebrates Exceptional Quarter with Significant Profit and Revenue Growth
Mukutban’s positive EBITDA through the December quarter has significantly contributed to the company’s profitability. Surpassing expectations, Mukutban crossed the 200,000-ton mark in sales and dispatches in January 2024, ahead of the projected timeline.
Harsh V. Lodha, Chairman of Birla Corporation, emphasized the company’s focus on reducing costs, improving capacity utilization, and realizing through a balanced brand portfolio. With a strong foundation established across North India, Birla Corporation is poised for the next phase of growth, aiming to become a 30-million-ton player by 2030 while committing to sustainable development goals.
Cement sales by volume were up 13.2% year-on-year, with a capacity utilization of 85% for the quarter. The company’s dedication to sustainability is evident in its high share of green and blended cement, accounting for more than 80% of cement sales.
The cement industry has seen a turnaround since the beginning of 2023, with Birla Corporation leading the charge in recovery. The company’s power and fuel cost per ton of cement production fell by 25.3% year-on-year, thanks to optimum fuel mix and the decline in fuel prices.
Despite facing challenges in the jute division due to poor demand, Birla Corporation remains optimistic about its performance in the coming quarter. The company takes a cautious view of the fourth quarter, considering potential impacts from general elections and the Model Code of Conduct.
In conclusion, Birla Corporation Limited’s outstanding performance in the December quarter reflects its strategic focus on operational efficiency, premium and value segments, and sustainability. As the company continues to navigate the dynamic cement industry landscape, its commitment to innovation and growth positions it well for future success.