Birla Corporation Q1 Profit Down 45.4% to Rs 32.6 Cr - Business News

New Delhi, Aug 8 (PTI) M P Birla Group firm Birla Corporation Ltd on Thursday reported a decline of 45.36 per cent in its consolidated net profit at Rs 32.62 crore in the first quarter ended June 2024, on account of weak cement prices, sluggishness in demand and downturn in the jute industry.

It had posted a net profit of Rs 59.71 crore in the April-June period a year ago, according to a regulatory filing from Birla Corporation.

Birla Corporation's revenue from operations was down 9 per cent to Rs 2,190.37 crore during the quarter under review. It was at Rs 2,407 crore in the corresponding period a year ago.

"Unusually weak cement prices and sluggishness in demand, coupled with an unprecedented downturn in the jute industry, weighed down Birla Corporation's June quarter profitability," the company said in an earnings statement.

Total expenses declined 7.81 per cent in the June quarter to Rs 2,163.41 crore.

Birla Corporation's total consolidated income was at Rs 2,207.41 crore, down 8.9 per cent in the June quarter.

Birla Corporation's revenue from cement business was down by 8 per cent to Rs 2,121.39 crore.

"In the face of contracting demand, the company's sales by volume fell less than 1 per cent, thanks to improved capacity utilization at its Mukutban unit," it said.

Cement sales by volume during the quarter were at 4.38 million tonnes (MT) compared to 4.41 MT in the same period last year, it added.

Its revenue from jute business was also down 32.37 per cent to Rs 69.06 crore.

"Jute division suffered a setback in the June quarter as the government scaled back orders for jute bags and export of shopping bags was hobbled by logistical constraints," it said.

Shares of Birla Corporation Ltd on Thursday settled at Rs 1,426.20 on BSE, down 2.44 per cent.