The Birla group stock, which specializes in cement manufacturing, climbed 7.6% to attain ₹1,678 per share after the company disclosed a 127% year-on-year surge in net profit.
At 10:55 a.m., On Monday, Birla Corporation Ltd. shares were trading at ₹1,624 a share on the National Stock Exchange, up 4.21 percent, and the company has a market capitalization of ₹ 12,402 crores.
Birla Corporation Ltd announced a consolidated net profit of ₹193 crores for the quarter ending March 2024 (Q4FY24), marking a 127% rise from ₹85 crores recorded in Q4FY23. Additionally, the company’s total revenue for the same quarter surged by 8%, reaching ₹2,463 crores compared to ₹2,656 crores in the previous year’s corresponding quarter.
For the fiscal year 2023-24, the company reported a consolidated net profit of ₹421 crore, up 927% from crores in FY22-23. Similarly, the total revenue for the fiscal year grew by 11%, standing at ₹9,663 crores compared to ₹8,682 crores in the previous fiscal year. As per the company’s filing.
The Cement Division witnessed a significant increase in EBITDA per ton for the March quarter, rising by 56.7% to ₹ 964 compared to ₹ 615 in the corresponding period last year. Sequentially, this reflects a growth of 6.75% from ₹ 903 in the December quarter.
Moreover, the Company achieved a record-high cement sales volume of 4.85 million tons for the March quarter, marking a 9.4% increase from 4.4 million tons in the same period last year.
Additionally, the Company’s full-year operating profit margin expanded by over 630 basis points to reach 15.52%. This expansion contributed to the Company’s net profit of ₹ 421 crore, which is more than 10 times higher than the net profit of the previous year.
Recently, the company’s Board of Directors approved the restructuring of the scope for the second phase expansion of the existing capacity of the grinding cement plant at Kundanganj, Uttar Pradesh. For an investment of ₹425 crores. To increase the capacity by 1.4 million tons.
Over the past six months, shares of Birla Corporation Ltd have appreciated by 24%, and over the last 12 months, they have surged by 65%.
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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