Birla Corporation's Q3 Net Profit Plummets 71% Amid Lower Cement Realisation; Revenue Dips 2.3%

New Delhi, Feb 4 (PTI): M P Birla Group's flagship firm, Birla Corporation Ltd, reported a 71.42% decline in its net profit to ₹31.19 crore for the December quarter, primarily due to lower sales realisation in the cement business.

The company had posted a net profit of ₹109.14 crore in the same period last year, as per its regulatory filing.

Revenue and Expenses Overview​

Birla Corporation’s revenue from operations dropped 2.32% year-on-year to ₹2,256.65 crore, compared to ₹2,310.44 crore in the corresponding period a year ago. Meanwhile, total expenses fell by 2.64% to ₹2,230.73 crore.

Cement Business Performance​

Despite a 7% rise in cement sales volume to 4.5 million tonnes (mt), revenue from the segment declined 3.38% to ₹2,155.58 crore. The increase in sales volume was driven by improved market conditions, with capacity utilisation reaching 92%, up from 85% last year.

However, realisation per tonne from cement sales fell 9.5% to ₹4,781, attributed to lower prices in Maharashtra and Central India.

Jute Segment Sees Revenue Growth but Suffers Loss​

The jute division witnessed a 27.23% rise in revenue, reaching ₹101.25 crore. However, the segment reported a cash loss of ₹4.60 crore, impacted by a decline in government orders and rising raw material and conversion costs.

On a positive note, the division recorded a 108% increase in overseas sales of value-added products during the quarter.

Company Outlook & Share Performance​

Birla Corporation remains optimistic about cement price recovery, with improved realisation expected to drive healthy growth in the coming quarters.

Following the earnings announcement, shares of Birla Corporation Ltd closed 2.8% higher at ₹1,171.65 apiece on the BSE.