Birla Corporation Limited announced a 9% increase in consolidated revenue for the September quarter, reaching Rs 2,441 crore. Cement sales volume grew by 7% year-on-year, despite weak pricing and rainfall disruptions. The company highlighted increased input costs impacting profitability, with EBITDA per ton for the Cement Division falling to Rs 482 from Rs 712 a year ago.
Birla Corporation Reports Strong September Quarter Performance
Birla Corporation Limited has released its financial results for the September quarter (Q2 FY27), reporting a 9.3% increase in consolidated revenue, which stood at Rs 2,441 crore compared to Rs 2,233 crore in the same period last year.
Cement Division Highlights
The company’s cement sales volume saw a healthy growth of 7% year-on-year, reaching 4.54 million tons. However, cement prices faced pressure due to weak market conditions and excessive rainfall impacting construction activities in core markets. Realization per ton for the cement division increased marginally by 1.7% to Rs 4,925. Despite this, the Cement Division’s EBITDA per ton decreased significantly to Rs 482 from Rs 712 in the prior year, impacted by a 13% rise in clinker costs and a 15% increase in power and fuel costs.
Key Financials (Q2/FY27 vs Q2/FY26)
- Revenue: Rs 2,441 crore (up 9.3%)
- EBITDA: Rs 254 crore (down 23.6%)
- Cash Profit: Rs 190 crore (down 28.3%)
- Net Profit: Rs 37 crore (down 58.9%)
Operational and Strategic Updates
To mitigate cost pressures, Birla Corporation increased its consumption of green power to 32% and commenced coal extraction from its Bikram coal mine in Madhya Pradesh. Sales of blended cement accounted for 86% of total cement sales, with significant growth observed in Maharashtra, Uttar Pradesh, Bihar, and Rajasthan. Newly commissioned plants at Kundanganj and Mukutban saw sales increase by 20% and 8% respectively. Premium product sales also grew by 17%.
Jute Division Performance
The Jute Division reported a cash profit of Rs 13.01 crore, up from Rs 4.64 crore in the previous year, driven by better price realization and a 143% jump in export sales. However, production for the division declined by 26% due to supply constraints and rationalized working days.
Outlook
The company anticipates improved realization from cement sales starting October, supported by a recovery in construction activities and government infrastructure spending. However, persistent cost pressures are expected to continue impacting overall profitability.
Source: BSE
