Birla Corporation posts Q3 loss of Rs 49.91 cr on higher production cost

On a comparable basis, Birla Corporation said, consolidated revenue was up by 9 per cent year-on-year (YoY).

cash, currency, notes, funds, investment, shares, growth, profit, loss, tax, money, income, earnings
Consolidated cement sales by volume for the quarter was up 11 per cent YoY at 3.72 million tonnes (mt)
Ishita Ayan Dutt Kolkata
2 min read Last Updated : Feb 05 2023 | 3:24 PM IST
Birla Corporation, M P Birla group flagship firm, on Saturday posted a consolidated net loss of Rs 49.91 crore in Q3FY23 on account of higher production cost. In the year-ago period it had recorded a net profit of Rs 60.45 crore.
 
Total revenue at Rs 2,024 crore, including sales from the Mukutban unit (of subsidiary, RCCPL), which started commercial operations in the current financial year, was higher by 15.2 per cent. On a comparable basis, Birla Corporation said, consolidated revenue was up by 9 per cent year-on-year (YoY).

Consolidated cement sales by volume for the quarter was up 11 per cent YoY at 3.72 million tonnes (mt) and the company managed to improve realisation per tonne to Rs 5,155 from Rs 4,899 a year ago. But the performance was impacted by a 12 per cent higher production compared to the same period last year primarily due to power and fuel resulting in lower cash profit. 

The company said that although the Mukutban project has been ahead of its plans and the adverse impact on the bottomline had been contained at a level substantially lower than the original budget, extraordinary cost pressure on the cement industry pulled down the overall financial performance.

To mitigate cost pressure, the company said, it had optimised its fuel consumption mix, the full benefits of which would be realised in the March quarter. Fuel prices have also climbed down and a further correction was expected to improve profitability.

The focus of the company in the coming months was to ramp up the Mukutban operations. With the unit going on stream, Birla Corporation said, it was well placed in the quarters ahead to participate in the infrastructure-led growth and demand surge in the western region.

One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Topics :Birla CorporationQ3 results

Next Story