VMPL
Kolkata (West Bengal), India – May 10:
Birla Corporation Limited
closed FY24-25 with strong quarterly output and sales volumes, leading to a combined net profit of Rs 257 crore for the March quarter, marking a 33% increase compared to the previous year. This improvement followed three difficult quarters that impacted the whole sector. Increased demand and pricing during this period contributed to improved revenue realizations and boosted capacity usage to 105% in the final quarter.
Although the realisation for the quarter stood at ₹5,103 per ton, which was slightly below the previous year’s figure of ₹5,178 per ton due to shifts in geographic distribution, consolidated revenues reached ₹2,863 crores—a rise of 7% YoY. EBITDA per ton increased significantly to ₹1,014—among one of the highest levels seen recently. This marks an increase of 5% YoY and 78% QoQ. For the March quarter, the Cement Division saw its operating profit margin improve to 20%, up from 18.6% during the corresponding period previously and 14% for the entire fiscal year (with a margin of 15.5% recorded in FY23-24).
Capital expenditures have been focused on stabilizing previous expansion projects, primarily at Mukutban in Maharashtra and Chanderia in Rajasthan. Additionally, efforts have been made to strengthen the company’s foothold in the key markets of central India.
Birla Corporation Limited
is now entering its next stage of development. The Board of
Birla Corporation Limited
Along with its subsidiary, RCCPL Private Limited, has sanctioned an investment of Rs 4,335 crore to boost production capacity from 20 million tons (mt) to 27.6 mt by fiscal year 2028-29. This will be achieved through the expansion of an integrated facility and the establishment of three new grinding units. The increased capacity also encompasses the current development at Kundanganj, which remains on track as scheduled.
RCCPL Private Limited plans to invest Rs 2,300 crores in its facility in Maihar, Madhya Pradesh, to increase its clinker production capacity. This expanded clinker output from Maihar will supply the company’s upcoming grinding units in Prayagraj, Gaya, and Aligarh.
Birla Corporation Limited
, along with its subsidiary, RCCPL, has allocated Rs 2,035 crore for investment purposes.
“Central and Eastern India’s capacity utilization exceeds 100%, stated Shri Harsh V. Lodha, Chairman,” adding “we anticipate cement demand to increase at an annual rate of 6-7% in the coming years. In order to strengthen our leading role within these rapidly expanding regions, we are prepared for further expansion phases. Introducing new production capabilities should enhance profit margins along with cutting down delivery times since our grinding stations will be situated nearer to consumer bases.”
RCCPL further expanded production capabilities at its Mukutbandar facility, which played a crucial role in enhancing profitability during FY24-25. Launched in 2022, this 3.9-million-tonne integrated plant stands out as one of the most productive cement facilities within the nation.
By generating strong cash flows,
Birla Corporation Limited
The company has lowered its net debt to Rs 2,244 crore as of March compared to Rs 3,003 crore during the same period last year. At the end of March, the firm’s cost of borrowing stood at 7.56%, which represents a decrease of 35 basis points from the previous year.
The cement sector experienced extraordinary pricing challenges throughout most of FY24-25 until August. By the close of December, prices had dropped by approximately 11%. Over the entire fiscal year, it’s projected that prices averaged around 4-5% less compared to the prior year. Birla Corporation reported an annual realized price decrease of about 7%, amounting to Rs 4,866 per ton for the same period. Due to these unfavorable pricing conditions, it is anticipated that the profit margins of cement producers shrank by roughly 130-180 basis points during FY24-25.
Birla Corporation Limited
In the March quarter, their cement sales by volume increased by 8% YoY to reach 5.2 million tons. For FY24-25, the company reported selling 18.1 million tons of cement, an increase from 17.6 million tons in the prior year, representing a growth of 2.5%. However, the total consolidated revenue for the fiscal year decreased by 4%, amounting to Rs 9,312 crores. Although they experienced a significant recovery during the final quarter, the consolidated net profit for the entire year dropped by 30% YoY to Rs 295 crore.
Despite the pressures on pricing and demand, the cement sector thrived due to favorable power and fuel expenses. For the March quarter, Birla Corporation experienced power and fuel costs dropping to ₹1,001 per ton, a decrease of 9% compared to the previous year. Over the entire fiscal year, these costs declined by 14%, reaching ₹1,035 per ton. Renewable energy constituted an increasing portion of their overall power supply.
power consumed
The rate for the year stood at 24.8%, up from 23.8% in the prior year.
As a trailblazer for elevating brand prestige to boost value share (in contrast to volume share, which traditionally measures market presence),
Birla Corporation Limited
succeeded in boosting the sales of its high-end items, with its leading brand, Perfect Plus, at the forefront. In fiscal year 24-25, the company saw an 11% increase year-over-year in the volume of premium product sales. These premium offerings made up 60% of the firm’s trade channel revenue for the period compared to 54% in the previous financial year from 23-24. Notably, Perfect Plus alone experienced a 15% expansion throughout this time frame and currently sells at a higher price than rival brands within the key Uttar Pradesh market segment.
Birla Corporation Limited
has ventured into the ready-mixed concrete (RMC) sector. Early experiences within the Uttar Pradesh market have been promising, prompting the company to consider expanding this operation. This new venture could also lead to increased demand for the company’s high-end offerings.
Re-appointment:
Birla Corporation Limited
The board meeting held on Friday confirmed the extension of Shri Sandip Ghose’s term as Managing Director and CEO for another three years, starting from January 1, 2026. During his previous tenure, Mr. Ghose played a key role in shaping the company’s brand architecture.
Birla Corporation Limited
He initiated the company’s move towards premium products. Additionally, he significantly contributed to merging the operations of Birla Corporation and RCCPL. As the present Managing Director and CEO, he implemented profound transformations within the organization and led the expansion at the Mukutban site. The board has tasked him with steering the subsequent stage of growth and development for the company.
Jute
The company views its jute operations as a distinctive asset with substantial potential to boost both revenue and profitability, complementing their primary cement business. Under enhanced managerial oversight and increased operational effectiveness, this division is demonstrating positive shifts. Following three successive quarters of financial deficits, the division achieved a cash profit of ₹4.43 crores in the fiscal year’s final quarter.
The Division has notably lowered the conversion costs while enhancing order execution domestically and internationally. This progress can be attributed to greater efficiencies in acquiring raw jute and optimizing resource use, leading to a sequential decrease of nearly 14% in conversion costs for the March quarter. Sales saw substantial gains over this period with an 8% year-over-year increase in domestic sales and an 18% rise in export volumes. Moreover, average daily production climbed by 9% compared to last year and surged by 18% from the previous quarter.
Besides maintaining its emphasis on selling advanced products, the division has begun investigating ways to boost research and development through collaborations with prestigious institutions. This move aims to support joint research efforts, develop innovative products, conduct industrial trials, and bring novel high-value fibers to market.
The company has established an objective for the division’s newly formed leadership team to transform Birla
Jute
into the most efficient jute production facility considering cost-effectiveness, profit potential, and safety.
Birla Corporation Limited
The MP Birla Group was established under the name Birla
Jute
In 1919, Manufacturing Company Limited was formed under the guidance of Syt MP Birla. The company holds interests in cement and jute products. It falls under the purview of the Birla family.
Jute
Mills stands as the inaugural jute factory established by an Indian businessman. This company, along with its affiliate, RCCPL Pvt Ltd, operates 10 cement facilities spread across eight regions nationwide, boasting an aggregate yearly production capability of 20 million tons. Under the MP Birla Cement label, they manufacture various types of cement tailored for varying weather conditions and customer preferences. Additionally, they distribute construction chemicals and wall putty.
For more information, visit
www.birlacorporation.com
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