Birla Corp Q1 Results Review - Mukutban To Drive Improvement In Profitability: Dolat Capital

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Birla Corporation Ltd. reported results in line, however adjusted profit after tax below estimates. Birla Corporation posted +9.3% YoY revenue to Rs 24.1 billion (-2.2% QoQ) led by +12.2% YoY/ -0.6% QoQ in volume to 4.4 million tonne, which was partially offset by -2.2% YoY/ -1% QoQ in realisation/tonne to Rs 5,229. Ebitda +14.9% YoY/ +8.6% QoQ to Rs 3 billion.However, adjusted profit after tax declined by 18.8% YoY to Rs 59 million in Q1 FY24.We like Birla Corp’s focus on trade segment (76% share), increasing share of premium products (54% share in trade), higher share (88%) of high margin blended cement and sizable presence in relatively better regions of Central, North and West. Improvement in profitability to continue as Mukutban utilisation improves and full benefit to be seen in FY25E. To support the growth beyond FY23, Birla Corp will embark on the next phase of growth to enhance its capacity to 30 million tonne per annum by FY30E from 20.0 mtpa in FY23. Thus, we maintain 'Buy' with a revised target price of Rs 1,479 based on 8.5 times (versus nine times five/ 10 year average.) consolidated FY25E enterprise value/Ebitda (versus eight times earlier) and 50% capital WIP of FY25E (our target price factors EV of $90/tonne)..Click on the attachment to read the full report:.Ambuja Cements - Capacity Expansion Announced; Cost Reductions A Key Focus: Motilal Oswal.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Birla Corp Q1 Results Review - Mukutban To Drive Improvement In Profitability: Dolat Capital

The company reported results in line, however adjusted profit after tax below estimates.

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