Kolkata: Birla Corporation Ltd concluded FY25 with robust quarterly production and sales by volume, which resulted in a consolidated net profit for the March quarter, growing 33 per cent year-on-year (y-o-y), to Rs 257 crore.
This came after three challenging quarters that had affected the entire industry. An uptick in demand and prices during the quarter led to better realisation and a higher capacity utilization of 105 per cent in the March quarter.
Though realisation for the quarter at Rs 5,103 per ton was still marginally lower than the same period last year (Rs 5,178 per ton) owing to the changed geographical mix, consolidated revenue for the quarter at Rs 2,863 crore was 7 per cent higher yoy. EBITDA per ton rose to Rs 1,014--one of the highest in recent years. It represents a growth of 5 per cent y-o-y and 78 per cent sequentially. The Cement Division’s operating profit margin was 20 per cent for the March quarter, compared to 18.6 per cent in the same period last year, and 14 per cent for the full year (15.5 per cent in FY23-24).
Capex: With stabilization of earlier expansions, mainly at Mukutban, in Maharashtra, and Chanderia, in Rajasthan, and consolidation of the Company’s position in the core markets of central India, Birla Corporation Ltd is now embarking on its next phase of growth. The Board of Birla Corporation Ltd, along with its subsidiary, RCCPL Pvt Ltd, approved an investment of Rs 4,335 crore to scale up the production capacity from 20 million tons (mt) to 27.6 mt by 2028-29, by expanding an integrated unit and setting up three new grinding units. The expanded capacity includes the ongoing expansion at Kundanganj, which is progressing on schedule.
RCCPL Pvt Ltd will invest Rs 2,300 crore into its Maihar (Madhya Pradesh) unit to expand its clinker production capacity.
The clinker produced at Maihar will be fed to the three new grinding units, to be set up at Prayagraj, Gaya and Aligarh, for which Birla Corporation Ltd, and its subsidiary, RCCPL, have budgeted for an investment of Rs 2,035 crore.