Birla Corporation Limited registered a near 15% growth in June quarter EBITDA despite subdued cement prices in core markets. The Company’s consolidated revenue for the quarter grew 9.3% to Rs 2,425 crore as cement sales by volume jumped 12.2% over the same period last year to 4.41 million tons. EBITDA for the quarter was at Rs 314 crore, against Rs 274 crore in the same period last year, up 14.8%.
Consolidated net profit for the quarter at Rs 60 crore was marginally lower than last year (Rs 62 crore) due to higher depreciation and interest cost. Cash profit was up 6.5% year-on-year at Rs 217 crore, largely on account of improved sales and a substantial decline in power and fuel costs.
Birla Corporation achieved a capacity utilization of 91% for the quarter, which was among the best in the industry. The Company’s subsidiary, RCCPL Private Limited, continues to steadily ramp up production at its 3.9 million ton-Mukutban plant, which was commissioned a year ago. As envisaged, the unit is fast making inroads into new markets such as southern Madhya Pradesh, Gujarat and Telengana. Dispatches from Mukutban in the June quarter rose 21% sequentially.
With the commissioning of the Mukutban plant, Birla Corporation has created strategic synergy among its plants due to their geographical locations. With 360-degree coverage of its core markets, the Company is uniquely positioned to serve its customers more efficiently. The Mukutban unit has created opportunities to enter new markets, and together with the synergies that are to be realised in the days ahead, the Company expects its profitability to improve substantially.