Birla Corporation’s MD resigns, company posts net loss of Rs 56.46 cr in Q2  | The Financial Express

Birla Corporation’s MD resigns, company posts net loss of Rs 56.46 cr in Q2 

In a stock exchange filing, the company said Pathak’s resignation as the MD & CEO will be effective from the close of business hours of December 31, 2022.

Birla Corporation’s MD resigns, company posts net loss of Rs 56.46 cr in Q2 
The company on Tuesday said it posted a net loss of Rs 56.46 crore in a consolidated basis for the second quarter this fiscal. (Representational image)

Birla Corporation, an MP Birla Group flagship, on Tuesday said its incumbent managing director & chief executive officer Arvind Pathak has tendered his resignation due to personal reasons. In a stock exchange filing, the company said Pathak’s resignation as the MD & CEO will be effective from the close of business hours of December 31, 2022. “Consequently, he shall also cease to be the Key Managerial Personnel of the Company effective closing business hours of December 31, 2022,” the company said, adding it received confirmation from Pathak that there was no other material reason for his resignation other than that which was mentioned in the resignation letter.

Birla Corporation said its board of directors, based on the recommendation of the Nomination and Remuneration Committee, has appointed Sandip Ghose as an additional director and simultaneously the wholetime director for the period from December 1 till December, 31, 2022 and also designated him as the Key Managerial Personnel of the company. “Consequent upon cessation of office of Arvind Pathak as the managing director & chief executive officer of the company, Sandip Ghose shall be elevated to the position of MD & CEO of the Company for a period of three years with effect from January 1, 2023,” the company said. It will seek member’s approval for the appointment by way of postal ballot in due course.

Also read| Birla Corp to invest $1 bn to ramp up production capacity

“Ghose brings to the company’s leadership team 39 years of experience in management, spread across multiple industries such as fast moving consumer goods, media and construction materials. He has previously worked at Birla Corporation as the chief operating officer and was responsible for transforming the marketing function of the company, following the acquisition of the erstwhile Reliance Cement Company Private Limited (now RCCPL Pvt. Ltd),” the company said in a release, adding Ghose was on a sabbatical during the pandemic to pursue his interests in mentoring young professionals and advising companies on business strategy.

Also read| Birla Corp to invest $1 bn to ramp up production capacity

The company on Tuesday said it posted a net loss of Rs 56.46 crore in a consolidated basis for the second quarter this fiscal. The company had posted a net profit of Rs 85.55 crore for the Second quarter last fiscal.

The company’s revenue from operations during the period under review rose 17.78% y-o-y at Rs 1999.83 crore. “Even with a double-digit growth in cement sales by volume, Birla Corporation’s September quarter profitability was impaired by a sharp increase in power and fuel costs, which could not be passed on to consumers in the seasonally weak monsoon quarter,” the company said in the release and added faced with a substantial increase in production cost, EBITDA for the September quarter fell 51.6% year-on-year to Rs 136 crore.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

First published on: 09-11-2022 at 07:28 IST