Birla Corp Q3 | Net profit, EBITDA surge, revenue declines 4%

Birla Corporation Ltd. reported its earnings for the December quarter on Saturday, January 31.

While its net profit and earnings before interest, tax, depreciation and amortisation (EBITDA) gained, its revenue declined.

Birla Corp reported a net profit of ₹52.8 crore in the third quarter, up 69.2% from the previous year's ₹31.2 crore.

However, its revenue declined 4.2% to ₹2,158.7 crore from ₹2,256.7 crore in the December quarter of the previous year.

The company's EBITDA increased 18% to ₹292.5 crore from last year's ₹247.7 crore.

Its margins expanded as well to 13.5% from 11% in the year-ago period.

Birla Corp reported exceptional items of ₹21.2 crore on the back of the new labour codes.

For its cement division, Birla Corp said demand recovered strongly in the December quarter, led by the B2B segment. It said with prices remaining soft in the B2b or non-trade segment, it steadfastly followed its trusted strategy of focusing on sales of blended and premium cement in the B2C market.

For the jute division, Birla Corp said in the near-term, supply of raw jute remains the key challenge owing to restrictions imposed on imports from Bangladesh and the 45-day cap on inventory, imposed by the Jute Commissioner's office. These may further tighten availability of raw jute and lead to price escalation, it added.

Shares of Birla Corp ended the previous session 0.6% up at ₹1,049.4 apiece. The stock has declined 22.4% in the last six months.

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