M P Birla group firm Birla Corporation Ltd on Tuesday reported a 23.52 per cent decline in consolidated net profit to Rs 84.95 crore in the fourth quarter ended March 2023. It had posted a net profit of Rs 111.08 crore in the year-ago period.However, the company’s revenue from operation was up 8.76 per cent to Rs 2,462.57 crore during the quarter under review. In the year-ago period, the same stood at Rs 2,264.21 crore.
In the latest March quarter, the company’s total income increased 7.63 per cent to Rs 2,511.68 crore. Revenue from cement segment stood at Rs 2,343.73 crore while that from jute segment was at Rs 119.04 crore. Total expenses rose 12.84 per cent to Rs 2,417.05 crore in the March quarter. “Birla Corporation Limited concluded a challenging FY2022-23 with record sales and an all-round strong performance in the March quarter, which wiped out cumulative losses till the end of December,” the Kolkata-based company said in its earning statement. Its sales volume in the January-March quarter was up 4.5 per cent to 4.44 million tonnes and capacity utilisation was 89 per cent.
“Despite sluggish demand in most key markets, the company’s consolidated cement sales by volume for the March quarter grew 4.5 per cent year-on-year to 4.44 million tonnes, a record high, and even with price remaining weak,” it said. The company’s units in traditional markets in northern and central India operated at full throttle maintaining high capacity utilisation and focused on shoring up market share in premium and blended cement. “Their robust performance contributed significantly to improve profitability,” it added.
In 2022-23, Birla Corporation‘s net profit was down 89.83 per cent to Rs 40.50 crore. It was at Rs 398.59 crore in FY22. Its consolidated revenue from operations in FY23 increased 16.36 per cent to Rs 8,682.27 crore. The company’s board has recommended a dividend of 25 per cent, which is Rs 2.50 per share for 2022-23.The board also approved issuance of Redeemable Non-Convertible Debentures worth up to Rs 200 crore on a private placement basis within a period of one year.Birla Corporation’s consolidated net debt at the end of March stood at Rs 3,659 crore as against Rs 3,398 crore a year earlier.
“The company is constantly working towards reducing its borrowing cost, renegotiating Rs 2,200 crore of term loans,” it said.The company is primarily engaged in the manufacturing of cement and has a significant presence in the jute goods industry as well.Shares of Birla Corporation Ltd on Tuesday settled at Rs 991.05 on BSE, up 0.94 per cent from the previous close.