Birla Corp net surges to ₹ 94 cr in Q1

Birla Corporation, the MP Birla group company recorded a 276 per cent rise in net profit to ₹ 94 crore for the first quarter ended June 30, 2016.

The company had reported a net profit of ₹ 25 crore in the comparative quarter last fiscal.

Total income from operations during the period increased by 16 per cent to ₹ 901 crore (₹ 778 crore).

According to Harsh V Lodha, Chairman, both the cement and jute divisions performed well during the quarter under review, owing to higher production and substantially better operational efficiency. The cement division recorded better realization also.

During the quarter, operating costs at Chanderia and Satna plants could be brought down as a result of operational efficiencies, a judicious fuel mix and lower fuel prices. On account of reduced PP granule prices, the packing cost of cement has also come down.

The jute division reported better performance with modernizing of units giving rich dividends, the company said in a release.

The MP Birla Group flagship company further said that it was on-course to complete the acquisition of Reliance Infrastructure’s entire cement business.

Birla Corp is in the process of completing the “acquisition process shortly. “

The acquisition will provide the company with ownership of modern plants and take its cement production capacity to 15.4 MTPA, from the existing from 9.8 MTPA. It will also strengthen presence in the high-growth Central region.

Birla Corp’s expansion potential will also be enhanced with mineral concession in Madhya Pradesh, Maharashtra, Rajasthan, Karnataka, Andhra Pradesh and Himachal Pradesh, it said in a release.

RCCPL has three cement units – an integrated cement plant at Maihar (Madhya Pradesh) and grinding units at Kundanganj (Uttar Pradesh) and Butiburi (Maharashtra).