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

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.