Birla Corporation’s Q4 profit surges 127% to Rs 193 crore, revenue up by 6.8%

Birla Corp Q4 results: Birla Corporation Ltd, a cement manufacturer, has reported a strong surge in its consolidated net profit for the quarter ending March 2024, reaching Rs 193 crore, marking a 127 per cent uptick. The company attributes this growth to lower power and fuel costs, which helped counterbalance the subdued pricing environment for construction materials amidst unusually weak market conditions.

The consolidated revenue for the fourth quarter of the fiscal year 2023-24 stood at Rs 2,682 crore, indicating a growth of 6.8 per cent compared to the same period last year. However, a dip of 1.6 per cent year-on-year in realisation from cement was observed, amounting to Rs 5,178 per tonne during the March quarter.

Birla Corporation highlighted the successful ramping up of its Mukutban unit in Maharashtra, achieving a capacity utilisation of 97 per cent during the March quarter. Despite challenges such as Assembly elections in key regions contributing to weak cement prices over the past two quarters, the company remains focused on expansion plans.

The company's wholly-owned subsidiary, RCCPL Private Ltd, has approved an investment of Rs 425 crore to improve the capacity of its Kundanganj unit by 1.4 million tonnes within the next two years. Chairman Harsh Vardhan Lodha highlighted that a third of this investment will be sourced from internal accruals.

Looking ahead, Birla Corporation is gearing up to further increase its cement production capacity to 25 million tonnes by fiscal year 2026-27, reflecting its commitment to meet the growing demand for cement in India. Lodha expressed confidence in the company's capacity-building initiatives, citing the impressive performance achieved in the fiscal year 2023-24.

(With PTI inputs)