Birla Corp Q2 profit falls 58.6 pc to Rs 37 cr revenue up 9.5 pc to Rs 2 415 cr

     New Delhi, Oct 31 (PTI) MP Birla Group firm Birla Corporation Ltd on Saturday reported a 58.58 per cent decline in consolidated profit to Rs 37.47 crore in the September quarter of FY27, on a year-on-year basis, on account of higher input costs and lower realisation in cement.

     It had posted a net profit of Rs 90.48 crore a year ago, according to a regulatory filing from Birla Corporation.

     However, the company's revenue from operations was up 9.46 per cent to Rs 2,415.42 crore in the September quarter of FY27. It was at Rs 2,206.53 crore in the corresponding period a year ago.

     The quarter witnessed "weak cement prices and disruption in construction activities in core markets owing to excessive rainfall", the company said in its earnings statement.

     Total expenses of Birla Corporation were at Rs 2,389.21 crore, up 13.63 per cent, in the second quarter of FY27.

     During the quarter, revenue from cement was up 8.8 per cent to Rs 2,255.59 crore. It was at Rs 2,073.16 crore in the corresponding quarter last fiscal year.

     "The company's cement sales, by volume, during the quarter grew 7 per cent year-on-year to 4.54 million tonnes (MT), while realisation rose 2 per cent to Rs 4,925 per tonne. It was, however, marginally lower sequentially as cement prices weakened through July and August in core markets," it said.

     For the full quarter, realisation for the cement industry declined 3 per cent in the east and remained flat in central India. Modest improvements were witnessed in the west and north, it said.

     Its capacity utilisation for the quarter was at 85 per cent, similar as Q2/FY26 but profitability was impaired "owing to unprecedented increase in input costs, which couldn't be offset due to subdued prices".

     Moreover, clinker cost rose 13 per cent while power and fuel cost rose 15 per cent year-on-year as pet coke prices rose 64 per cent over the same period last year.

     "The cement division's EBITDA per tonne for the quarter was at Rs 482 versus Rs 712 in the same period last year," it said.

     However, in the jute division, revenue was up 20.56 per cent to Rs 160.39 crore.

     "The jute division overcame acute shortage of raw jute to report a cash profit for the quarter of Rs 13.01 crore compared to Rs 4.64 crore in the same period a year earlier. Faced with supply constraints, Birla Jute was forced to rationalise production by reducing working days. As a result, production during the quarter declined 26 per cent by volume year-on-year," it said.

     However, due to enhanced price realisation, Birla Jute registered a double-digit revenue growth during the quarter.

     "As result, Birla Jute's operating profit for the quarter was at Rs 6.16 crore against Rs 4.02 crore in the same period a year earlier.

     Total consolidated income of Birla Corporation, which includes other income, was at Rs 2,441.19 crore, up 9.30 per cent in Q2 FY27.

     For the first half (H1) of FY27, net profit fell 27.1 per cent to Rs 153.2 crore, while revenue rose 8.28 per cent to Rs 5,110.6 crore.

     On the outlook, the company said cement realisation has begun improving from October, but cost pressure is likely to persist and weigh on profitability.

     "Government spending on infrastructure is expected to be the key growth driver. Construction activities in the private sector, too, is gradually improving. But cost pressure will persist and may continue to impact overall profitability," it said.

(This story has not been edited by THE WEEK and is auto-generated from PTI)