Improvement in market conditions towards the end of the year helped Birla Corporation Limited report a year-on-year sales growth of 7% by volume in the December quarter, while consolidated EBITDA for the quarter at Rs 263 crore represents a sequential growth of 36%.
The Company’s consolidated cement sales by volume in the December quarter rose 7% to 4.5 million tons (mt) versus 4.2 mt in the same period a year ago, which represents a capacity utilization of 92% (85% last year).
Still, the Company’s realization from cement sales during the December quarter at Rs 4,781 per ton was 9.5% lower than last year because of lower prices in Maharashtra and central India. Nevertheless, it represents a sequential growth of 1.8% (Rs 4,697per ton in the September quarter). Prices have started to firm up and improved realization is expected to support healthy growth in the quarters ahead.
The Company’s performance was led by the Chanderia unit, which benefited from higher traction in demand and prices in northern India. In the core markets of central India, the Company retained its premium positioning despite increased competition.
The Mukutban plant of the Company’s subsidiary, RCCPL Pvt. Limited, registered a sequential volume growth of almost 20% and has established itself as one of the most efficient cement plants. It is now a significant contributor to the Company’s overall performance.