This M.P. Birla Group Stock, which operates in the Cement & Jute Division, is in focus as its stock jumped 20 percent, hitting the 10 percent upper circuit mark after reporting robust Net Profit growth of 730 percent and announcing a 100 percent dividend.
With a market capitalization of Rs. 9,781 Crore, the stock of Birla Corporation opened at Rs. 1,270, up 20 percent from yesterday’s close hitting the 20 percent upper circuit mark. Additionally, the Yearly return for the stock is -11 percent, and the past 5-year return is an impressive 216 percent.
Financial Highlights & Dividend Recommendation
The company reported a 6.06 percent YoY increase in revenue from Rs. 2,654 Crore in Q4FY24 to Rs. 2,815 Crore in Q4FY25. On a QoQ basis, the company reported an increase of 24.72 percent in revenue from Rs. 2,257 Crore in the previous quarter.
Their Net profit saw an increase of 33.16 percent YoY from Rs. 193 Crore to Rs. 257 Crore for the same period. On a QoQ basis, the company reported an impressive increase of 729.03 percent in Net profit from Rs. 31 Crore in the previous quarter.
The huge increase in Net Profits can be attributed to the Big revenue jump and overall lower increase in expenses when compared to Q3FY24, as this quarter the revenue jump was significant. Net profit also saw a jump because of a one-time Exceptional gain in this quarter.
The board of directors also recommended a dividend of Rs. 10 per share, which is 100 percent of the face value of the company. The dividend will be subject to approval from shareholders of the company at the AGM.
Further Board also approved Capex (Capital Expenditure) towards increasing capacity by setting up a Greenfield Cement Grinding Unit, with a capacity of 2.80 million tons per annum at Gaya, Bihar, in a phased manner.
Board also approved the proposal for the issue of Redeemable NCD (Non-Convertible Debenture) aggregating up to Rs. 200 Crores on a private placement basis in one or more tranches.
About the Company
Flagship company of the M.P. Birla Group, headquartered in Kolkata, India. Established in 1919 as Birla Jute Manufacturing Company Limited. Birla Corporation is primarily known for its strong presence in the cement industry, operating over 10 plants across eight locations and producing a range of cement types, including Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland Slag Cement (PSC), Sulphate Resistant Cement, and Composite Cement.
Written By Abhishek Das
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