Birla Corporation Ltd, the flagship company of the M P Birla Group, reported a consolidated net profit of Rs 16.29 crore for the second-quarter (Q2) ended September 30, 2018, as compared to Rs 1.46 crore profit in the corresponding year-ago period.
Company officials attributed the performance to volume growth and improved price realization in the central region, primarily Uttar Pradesh.
While revenue from operations (net of taxes) during the said quarter stood at Rs 1,464.56 crore (Rs 1,234.03 crore), consolidated EBITDA (earnings before interest, tax, depreciation and amortization) in Q2 FY 2018-19 stood at Rs 205.87 crore (Rs 188.71 crore).
According to a Birla Corp release, the company has been able to show better results than the corresponding quarter on account of higher volumes and realization, higher proportion of premium products and blended cement and optimization of logistics and other costs, including significant spends in fuel costs and exchange loss for the quarter compared to the corresponding quarter, the company has stated in its filing with the stock exchanges.
The companys consolidated results include those of RCCPL (Reliance Cement Company Pvt Ltd), its wholly-owned material subsidiary.
Birla Corp's cement production for the said period was 30.97 lakh tonnes as against 26.84 lakh tonnes a year ago, reflecting an increase of 15.38 %.
Company officials claim demand for cement is expected to be string on the back of government push on infrastructural activities, rural development as well as increased rural housing. "Further, the expected pre-election spending in various regions will boost the demand for cement," the official added.
The company will soon start test marketing of construction chemicals and additives to extend the MP Birla franchise, according to the release.
Birla Corp plans to invest Rs 2,450 crore to set up a 3.9 million tonne per annum (mtpa) integrated plant at Yavatmal in Maharashtra. The proposed cement plant will be part of RCCPL Private Limited, a wholly owned subsidiary of the company post MP Birla Group flagship's acquisition of Reliance Infrastructure's cement arm Reliance Cement Company Private Limited.
The board of RCCPL recently also approved the second phase of expansion of the companys grinding cement plant at Kundanganj. The expansion would be carried out by installing the third line having a cement capacity of 1.2 mtpa enhancing the cement capacity to 3.20 mtpa.
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