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Birla Corp gains as Q4 PAT soars 127% YoY to Rs 193 cr

06-May-24 12:57 Hrs IST

The firm?s power and fuel costs per ton of cement production fell 27% in the March quarter.

Revenue from operations grew by 7.87% YoY to Rs 2656.43 crore in the quarter ended 31 March 2024.

The company said that the realization from cement in the March quarter came under intense pressure and fell 1.6% YoY to Rs 5,178 per ton.

Profit before exceptional items and tax was at Rs 266.03 crore in the March quarter, steeply higher than Rs 94.63 crore recorded in Q4 FY23.

EBITDA dropped 54.2% to Rs 498 crore in Q4 FY24 as compared to Rs 323 crore posted in Q4 FY23. EBITDA per ton in the fourth quarter was Rs 964, up by 56.7% from Rs 615 in the corresponding quarter previous fiscal.

The company achieved record high cement sales by volume for the March quarter at 4.85 million tons, up 9.4% from 4.4 million tons posted in the same period a year ago. This resulted in capacity utilization of 97% for Q4 FY24 as compared to 89% registered in Q4 FY23.

In its outlook, the firm said , ?The cement demand in the first quarter of fiscal 2024-25 is expected to be impaired due to the general elections and extreme summer conditions across the country. The second quarter of the year is historically a weakdemand period due to monsoons. However, volume push by major players is unlikely to ease due to favourable cost factors. As a combination of these factors, no improvement in price is expected.

The company will continue to further ramp up Mukutban operations with special focus on the Maharashtra market to avail tax incentives. We will maintain our thrust on increasing share of premium products in Maharashtra, Gujarat and Rajasthan where we have headroom for growth. Investment into brand-building and channel development will be stepped up to further improve price-positioning of premium products. Simultaneously, cost reduction measures under Project Shikhar and Project Unnati and other initiatives will be accorded highest priority. Through these various measures, the Company will attempt to mitigate any impact of the downturn in the market.?

Birla Corporation?s Jute division reported a cash profit of Rs 8.61 crore in Q4 FY24, compared with Rs 8.19 crore in the same period last year, up 5%, as sales of shopping bags were scaled up to 2.68 million from 0.91 million.

For FY24, the company reported a consolidated net profit of Rs 420.56 crore, steeply higher than Rs 40.50 crore posted in FY23. Revenue from operations rose 11.29% YoY to Rs 11.29 crore in FY24.

A sharp decline in power and fuel costs, which typically account for 25-30% of the total production cost, has helped the cement industry turn the corner in fiscal 2023-24, with operating profit margin expanding on average by 300- 350 basis points, according to CRISIL.

Meanwhile, the company?s board has recommended a dividend of Rs 10 per share for the financial year 2023-24, which will be paid within 30 days from the date of approval by the shareholders.

Separately, the board, based on the recommendation of the Nomination and Remuneration Committee, has designated Aditya Saraogi, chief financial officer of the company as the Group chief financial officer with effect from 4 May 2024.

Birla Corporation is flagship company of the MP Birla Group. The company has interest in cement and jute goods.