The Birla group stock, involved in cement manufacturing, rose by 5.2% to reach ₹1,570.45 per share following the board’s approval of a ₹425 crore investment to expand the cement grinding capacity at its Uttar Pradesh plant.
At 12:30 a.m., On Friday, Birla Corporation Ltd shares were trading at ₹1,561.25 a share on the National Stock Exchange, up ₹ 4.51 percent, and the company has a market capitalization of ₹ 12,014 crores.
According to an exchange filing by the company, Birla Corporation Ltd announced a cement capacity expansion for RCCPL Private Limited, its wholly-owned material subsidiary.
On May 2nd, 2024, the Board of Directors of Birla Corporation Ltd approved the restructuring of the scope for the second phase expansion of the existing capacity of the grinding cement plant at Kundanganj, Uttar Pradesh, to cater to future growth.
The expansion plan entails the installation of a new cement grinding line (mill No. 3) at the Kundanganj unit of RCCPL, for an investment of ₹425 crores. This proposed expansion is expected to increase the capacity by 1.4 million tons, adding to the existing capacity of 9.81 million tons.
In contrast to the previous quarter, operational revenue experienced a robust 15% increase, rising from ₹2,016 crore in Q3FY23 to ₹2,312 crore in Q3FY24. Furthermore, net profit has shifted from a loss of ₹50 crore to a profit of ₹109 crore.
Over the past six months, shares of Birla Corporation Ltd have appreciated by 20%, and over the last 12 months, they have surged by 67%.
Birla Corporation Ltd, a part of the M.P Birla Group, specializes in cement manufacturing and also operates in the jute goods industry. The company produces various types of cement, including OPC Cement, 43&53 grades, PPC cement, fly ash-based PPC, Low Alkali Portland Cement, and Portland Slag Cement.
The company aims to increase its capacity to 25 million tons by FY’27, incorporating a combination of clinker and grinding units. Their strategic focus lies on enhancing go-to-market strategies and optimizing supply chain management practices.
Written by Omkar Chitnis
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