Birla Corp Q1 Profit Drops 45% to Rs 33 Crore | Weak Cement Demand
Aug 08, 2024 18:43
Birla Corporation reported a 45% decline in net profit to Rs 33 crore in Q1 FY25, impacted by weak cement prices and sluggish demand. Revenue also fell by 8.9% to Rs 2,207 crore.
Photograph: Anindito Mukherjee/Reuters
Kolkata, Aug 8 (PTI) M P Birla group flagship firm Birla Corporation on Thursday posted a 45 per cent decline in its net profit to Rs 33 crore during the first quarter of the 2024-25 fiscal as compared to Rs 60 crore in the year-ago period.
A company statement said that revenue of the company during the April-June period also decreased by 8.9 per cent at Rs 2,207 crore as against Rs 2,423 crore in the similar previous quarter
It said weak cement prices coupled with sluggish demand have weighed down the profitability of the June quarter. Sales volumes also declined marginally in the face of contracting demand.
Faced with challenging market conditions, the Kolkata-headquartered company focused on reducing variable costs in cement production across its units.
The jute division of the company registered a cash loss of Rs 3.9 crore in the quarter under review against a cash profit of Rs 6.4 crore in the similar previous period.
Realisation of cement sales per tonne during the first three months of the current fiscal declined to Rs 4,820 crore as against Rs 5,180 crore in the previous period.
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