The company reported a net profit of Rs 142 crore during the previous quarter ended June 2021.
“Birla Corporation was faced with a sharp increase in fuel, raw material and packaging costs during the quarter owing to a significant increase in commodity prices,” the company said in a media statement on Wednesday.
Performance in the September quarter was also impacted by an extended shutdown at the Company’s New Chanderia Cement Works (NCCW) at Chittorgarh to complete an expansion project, which got commissioned during the quarter.
The Cement Division’s realization per tonne for the September quarter was at Rs 4,847 compared to Rs 4,862 last year, down 0.3 per cent year-on-year.
The company reported an operating profit (Ebitda) of Rs 281 crore, down 30.4 per cent YoY. Birla Corp reported consolidated revenue of Rs 1,711 crore, up 2.1 per cent YoY. The Company managed to grow its share of sales of premium cement by 53 per cent in the September quarter compared with 48 per cent last year.
The company also said that there was a Shortage of sand which severely impacted the construction industry not only in Bihar but in eastern Uttar Pradesh where the Company has one of the highest market shares.
“The local administration has now started to address the crisis and it is expected that normalcy would return in the December quarter,” the company said.
Birla Corp reported a total expense of Rs 1,591.92 crore up 10.5 per cent YoY.
Prices of pet coke and coal, both domestic and imported, went up sharply during the quarter. Linkage coal from subsidiaries of Coal India Limited was also in short supply, forcing the Company to buy coal from the open market at substantially higher prices.
“In view of the significant increase in coal price the Company has decided to operate only one boiler at its captive power plants in Chanderia and Satna, respectively, and change power mix to reduce the impact of the increase in power and fuel costs,” the company’s statement said.
The company is also planning to increase the production of coal at its captive mine, Sial Ghoghri, in the second half of the financial year.
The company said that The 3.9 mt greenfield project at Mukuban, Maharashtra, is on track to get commissioned in the fourth quarter of the current year.
The Jute Division reported its highest ever quarterly cash profit of Rs 18 crore for the September quarter compared with Rs 8.3 crore in the same period last year—a growth of 117 per cent.
“Post monsoon, demand for cement has started to improve. The Company has raised prices to partially pass on the increase in input cost,” the company said in the statement.
