Birla Corp Q1 FY27: Cement Sales Up 5%, Revenue Up 7% to ₹2,669 Crore
Birla Corporation's Q1 FY27 cement sales volume rose 5% to 5.05 mt, with revenue up 7% to ₹2,669 crore. Net profit declined 3.3% to ₹116 crore due to higher costs. Premium cement sales grew 18%, and capacity utilization stood at 98%. The Jute Division faced challenges but reported a cash profit of ₹4.28 crore.
The results show mixed performance with revenue growth but a decline in net profit and challenges in the Jute Division. While cement sales are up, margin pressures and future price uncertainty limit the immediate positive impact.
The company reported revenue growth and increased cement sales volume, which are positive. However, net profit declined due to rising costs and subdued realization, and the Jute Division faced significant challenges, leading to a neutral overall sentiment.
Birla Corporation Limited reported a 5% year-on-year increase in cement sales volume for the June quarter, reaching 5.05 million tons. This growth was driven by sustained gains in the trade segment across key states like Maharashtra, Uttar Pradesh, Bihar, and Rajasthan. The company maintained a high capacity utilization of 98% during the quarter.
Revenue for the quarter grew by 7% to ₹2,669 crore compared to the same period last year. However, net profit saw a slight decrease of 3.3% to ₹116 crore. This was attributed to subdued realization from cement sales and an escalation in power and fuel costs. The realization per ton for cement sales was ₹4,947, an increase of 1.8% year-on-year, while EBITDA per ton decreased by 5.6% to ₹675 due to a 5% rise in power and fuel costs.
The company's premium cement sales volume increased by 18%, with its flagship brand, Perfect Plus, showing a 24% growth. Sales through the trade channel also rose by 11%. To mitigate rising energy costs, Birla Corporation increased its consumption of green power to 33% and commissioned a 5 MW solar power plant at Mukutban.
The Jute Division faced challenges due to high raw jute prices and supply disruptions, leading to a 27% decline in production. Despite this, the division reported a cash profit of ₹4.28 crore, supported by an 18% increase in domestic sales revenue and a 13% increase in overseas sales revenue.
Looking ahead, cement demand is expected to remain muted until August, with recovery anticipated from September, driven by government spending and private sector construction. Meaningful recovery in cement prices is not expected until the December quarter due to capacity overhang and intense competition.
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