Birla Corp Q1 Results: Profit Down 3% On Lower Cement Prices, Surge In Fuel Costs

Birla Corporation, a member of the M P Birla Group, announced on Saturday that its consolidated net profit for the June quarter of this fiscal year had decreased 3.2% year over year to Rs 115.7 crore. This decline was attributed to lower cement sales realisation as well as rising fuel and electricity expenses.A year before, Birla Corporation reported a net profit of Rs 119.57 crore for the April&ndash;June quarter, according to an exchange filing on Saturday.But in the June quarter of FY&#039;27, Birla Corporation&#039;s operating revenue increased by 7.8% to Rs 2,646.45 crore. In the same period last year, it stood at Rs 2,454.22 crore.ALSO READ:&amp;nbsp;Q1 Results Live Updates: IDFC First Bank Profit More Than Doubles; AU SFB Bottom Line Up 37%Cement prices continued to be under pressure during the quarter; according to an earnings statement from Birla Corporation, price increases implemented in April and May had to be reversed in June due to fierce competition for market share.Birla Corporation&#039;s total expenses for the June quarter increased by 8.87% to Rs 2,513.71 crore. In the first quarter of FY27, Birla Corporation&#039;s cement division brought in Rs 2,515.17 crore, a 7.4% increase. In the same quarter, it stood at Rs 2,341.86 crore.With &quot;sustained gains in the trade segment in states such as Maharashtra, Uttar Pradesh, Bihar and Rajasthan,&quot; the company&#039;s cement sales by volume increased by 5% to 5.05 Metric Tonnes.However, &quot;EBITDA per ton was 6% lower at Rs 675, but realisation from cement sales for the quarter was at Rs 4,947, up nearly 2% year over year.&quot; This was mostly due to a 5% rise in gasoline and electricity prices. The Cement Division&#039;s EBITDA margin for the quarter was 13.6%, which is 110 basis points lower than the same period last year.The Jute branch of Birla Corporation brought in Rs 131.25 crore, a 16.7% decrease. With raw jute prices reaching a record high, Jute Mills faced yet another difficult quarter.The division was compelled to rationalise output by cutting working days due to a severe shortage and disruption in the raw jute supply. As a result, production fell 27% year over year during the quarter.&quot;Still, the division reported a cash profit of Rs 4.28 crore against Rs 6.41 crore in the same period last year, as domestic sales (by revenue) increased 18 per cent yoy, and overseas sales, 13 per cent yoy,&quot; it said.The flagship company of the MP Birla Group reported total revenue of Rs 2,669.41 crore in the June quarter, up 7.37%.According to the company&#039;s forecast, cement consumption is anticipated to stay low until the conclusion of the monsoon season in August before picking up in September, thanks to government investment and private sector building projects.&quot;Given the capacity overhang and intense competition among manufacturers, meaningful recovery in cement prices could be expected only in the December quarter,&quot; it stated. &quot;Even with energy prices edging upward, further price hikes have been deferred until the end of the monsoons, and it is expected that realisation will remain weak in the near term.&quot;(With PTI inputs)

Birla Corp Q1 Results: Profit Down 3% On Lower Cement Prices, Surge In Fuel Costs

According to the company's forecast, cement consumption is anticipated to stay low until the conclusion of the monsoon season in August before picking up in September.

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