Birla Corporation Q2 PAT rises 87% to Rs 166 crore
Share price of Birla Corporation jumped over 7% in the morning session on November 6 after the company declared its September quarter results.
The company reported profit after tax which increased 87% at Rs 166.62 crore in the second quarter of current fiscal as compared to Rs 88.34 crore in the similar previous period.
Revenue of the company increased 1.7% at Rs 1,675.41 crore as against Rs 1,646.73 crore in the similar period previous year.
The company has around 10 cement plants spread across the country, with an annual installed capacity of 15.5 mt and a 3.9 mtpa cement plant which will be commissioned by September 2021 at Mukutban, Maharashtra.
In view of the recovery witnessed in the past few months, Birla Corporation Limited has also decided to bring back on track its Rs 250-crore capacity expansion project at Kundanganj, which, in May, was put on hold due to uncertainties over cement consumption.
The company’s Jute unit turned in a cash profit of Rs 8.35 crore, compared with Rs 5.59 crore in the same period a year earlier, which represents a growth of 49.4%.
The company’s cost rationalization initiatives have yielded an expense reduction of 4% compared with the same period last year.
Birla Corporation has pared its indebtedness from Rs 4,172.77 crore a year earlier to Rs 4,060.65 crore at the end of September, despite spending close to Rs 800 crore on the upcoming factory at Mukutban over the past 12 months.
It expects the recovery in cement demand would be sustained through the rest of the financial year.
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