Birla Corp Q1 Profit Down 3.2% on Lower Cement Prices

New Delhi, Jul 25 (PTI) M P Birla Group firm Birla C orporation on Saturday reported an on-year decline of 3.2 per cent in consolidated net profit to Rs 115.73 crore in the June quarter of this fiscal year, due to subdued realisation from cement sales and escalation in power and fuel costs.

Birla Corporation had posted a net profit of Rs 119.57 crore for the April-June period a year ago, the company said in a regulatory filing.

However, Birla Corporation's revenue from operations was up 7.8 per cent to Rs 2,646.45 crore in the June quarter of FY'27. It was at Rs 2,454.22 crore in the corresponding period a year ago.

During the quarter, cement prices remained under pressure: price hikes introduced in April-May had to be rolled back in June amid intense competition for market share, Birla Corporation said an earnings statement.

Total expenses of Birla Corporation were at Rs 2,513.71 crore, up 8.87 per cent in the June quarter.

Birla Corporation's revenue from the Cement business was up 7.4 per cent to Rs 2,515.17 crore in the first quarter of FY'27. It was at Rs 2,341.86 crore in the corresponding quarter.

The company's cement sales by volume grew by 5 per cent to 5.05 Metric Tonnes, helped by "sustained gains in the trade segment in states such as Maharashtra, Uttar Pradesh, Bihar and Rajasthan."


However, "realisation from cement sales for the quarter was at Rs 4,947 per ton, up almost 2 per cent yoy, but EBITDA per ton was 6 per cent lower at Rs 675. This was largely on account of a 5 per cent increase in power and fuel cost. The Cement Division's EBITDA margin for the quarter was at 13.6 per cent, down 110 basis points from the same period last year," it said.

Birla Corporation's revenue from the Jute division was down 16.7 per cent to Rs 131.25 crore. Jute Mills faced another challenging quarter with raw jute prices shooting to a record high.

Coupled with acute shortage, disruption in supply of raw jute forced the division to rationalise production by reducing working days. Consequently, production during the quarter declined 27 per cent yoy.

"Still, the division reported a cash profit of Rs 4.28 crore against Rs 6.41 crore in the same period last year, as domestic sales (by revenue) increased 18 per cent yoy, and overseas sales, 13 per cent yoy," it said.

Total income of Birla Corporation, the flagship firm of MP Birla Group, was at Rs 2,669.41 crore, up 7.37 per cent in the June quarter.

On the outlook, the company said going forward, cement demand is expected to remain muted until the end of the monsoons in August and recover from September, boosted by government spending and construction activities in the private sector.

"Even with energy prices edging upward, further price hikes have been deferred till the end of monsoons, and it is expected that realisation will remain weak in the near term.

"Given the capacity overhang and intense competition among manufacturers, meaningful recovery in cement prices could be expected only in the December quarter," it said.