INSUBCONTINENT EXCLUSIVE:
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
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 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
