Birla Q2 results: Net profit jumps 89%
M.P. Birla Group’s flagship company, Birla Corporation has reported a 88.6 per cent year-on-year rise in consolidated net profit at Rs 166.62 crore mainly on account of the company’s cost rationalisation initiatives and a better-than-expected recovery in cement demand.
The company has around 10 cement plants spread across the country, with an annual installed capacity of 15.5 MT and a 3.9 MTPA cement plant which will be commissioned by September 2021 at Mukutban, Maharashtra.
In view of the recovery witnessed in the past few months, Birla Corporation Limited has also decided to bring back on track its Rs 250-crore capacity expansion project at Kundanganj, which, in May, was put on hold due to uncertainties over cement consumption.
Birla Corporation has pared its indebtedness from Rs 4,172.77 crore a year earlier to Rs 4,060.65 crore at the end of September, despite spending close to Rs 800 crore on the upcoming factory at Mukutban over the past 12 months, the company statement said.