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Birla Corp Q1 Profit Rises 264 per cent, Cement Sales Grow 9 per cent
Cement

Birla Corp Q1 Profit Rises 264 per cent, Cement Sales Grow 9 per cent

Birla Corporation Limited reported consolidated revenue of Rs 24.86 billion for the June quarter, marking a 13 per cent rise year-on-year, with net profit soaring 264 per cent to Rs 1.2 billion. Cement sales volume rose 9 per cent to 4.79 million tonnes from 4.38 million tonnes the previous year.

Consolidated EBITDA increased 38 per cent to Rs 3.79 billion from Rs 2.75 billion, driven by improved cement sales, cost reductions, and a turnaround in the jute division.

Cement operations faced mixed regional market conditions. While western and eastern India showed strength, central India remained weak due to low prices and early monsoons. This affected demand and depressed prices across regions, although realisation improved moderately to Rs 4,858 per tonne.

The Cement Division posted an EBITDA of Rs 3.64 billion, up 34 per cent year-on-year. EBITDA per tonne increased 19 per cent to Rs 715. The operating profit margin rose to 14.7 per cent from 12.5 per cent. However, profitability was impacted by extended maintenance shutdowns, reducing clinker production by 17 per cent to 2.44 million tonnes. This was partially offset by third-party clinker purchases.

To protect margins and market share, the Company prioritised premium and blended cement sales over ordinary portland cement and non-trade channels. The flagship brand Perfect Plus led growth with a 19 per cent increase in volume, while Unique Plus saw 37 per cent growth. Premium products comprised 58 per cent of trade channel sales, significantly enhancing profitability.

Blended cement accounted for 89 per cent of total sales, up from 84 per cent last year. The eastern region led with 18 per cent growth in cement sales, followed by 15 per cent in the west and 7–8 per cent in central and northern markets. Notably, West Bengal and Rajasthan contributed 37 per cent and 15 per cent growth, respectively.

The Company gained from reduced fuel costs, with power and fuel expenses falling 8.4 per cent to Rs 933 per tonne from Rs 1,019 last year. Green power use rose to 26.9 per cent of total energy consumption.

Managing Director and CEO Sandip Ghose stated that the Mukutban plant's rapid ramp-up and efficient utilisation of the Chanderia expansion place the Company on a strong path for the next growth phase, supported by both brownfield and greenfield investments.

The Jute Division delivered a notable turnaround, achieving a Rs 64 million cash profit versus a Rs 39 million loss last year. Local sales surged 63 per cent and export revenue jumped 133 per cent. Despite higher raw jute prices, profitability was preserved by lowering processing costs and increasing production.

To further improve efficiency, the Company is installing advanced looms and setting up a rooftop solar facility expected to generate substantial savings when operational by the financial year-end. The Division aims to become the most cost-efficient, profitable, and safest jute processing unit in the industry.


Birla Corporation Limited reported consolidated revenue of Rs 24.86 billion for the June quarter, marking a 13 per cent rise year-on-year, with net profit soaring 264 per cent to Rs 1.2 billion. Cement sales volume rose 9 per cent to 4.79 million tonnes from 4.38 million tonnes the previous year.Consolidated EBITDA increased 38 per cent to Rs 3.79 billion from Rs 2.75 billion, driven by improved cement sales, cost reductions, and a turnaround in the jute division.Cement operations faced mixed regional market conditions. While western and eastern India showed strength, central India remained weak due to low prices and early monsoons. This affected demand and depressed prices across regions, although realisation improved moderately to Rs 4,858 per tonne.The Cement Division posted an EBITDA of Rs 3.64 billion, up 34 per cent year-on-year. EBITDA per tonne increased 19 per cent to Rs 715. The operating profit margin rose to 14.7 per cent from 12.5 per cent. However, profitability was impacted by extended maintenance shutdowns, reducing clinker production by 17 per cent to 2.44 million tonnes. This was partially offset by third-party clinker purchases.To protect margins and market share, the Company prioritised premium and blended cement sales over ordinary portland cement and non-trade channels. The flagship brand Perfect Plus led growth with a 19 per cent increase in volume, while Unique Plus saw 37 per cent growth. Premium products comprised 58 per cent of trade channel sales, significantly enhancing profitability.Blended cement accounted for 89 per cent of total sales, up from 84 per cent last year. The eastern region led with 18 per cent growth in cement sales, followed by 15 per cent in the west and 7–8 per cent in central and northern markets. Notably, West Bengal and Rajasthan contributed 37 per cent and 15 per cent growth, respectively.The Company gained from reduced fuel costs, with power and fuel expenses falling 8.4 per cent to Rs 933 per tonne from Rs 1,019 last year. Green power use rose to 26.9 per cent of total energy consumption.Managing Director and CEO Sandip Ghose stated that the Mukutban plant's rapid ramp-up and efficient utilisation of the Chanderia expansion place the Company on a strong path for the next growth phase, supported by both brownfield and greenfield investments.The Jute Division delivered a notable turnaround, achieving a Rs 64 million cash profit versus a Rs 39 million loss last year. Local sales surged 63 per cent and export revenue jumped 133 per cent. Despite higher raw jute prices, profitability was preserved by lowering processing costs and increasing production.To further improve efficiency, the Company is installing advanced looms and setting up a rooftop solar facility expected to generate substantial savings when operational by the financial year-end. The Division aims to become the most cost-efficient, profitable, and safest jute processing unit in the industry.

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