Birla Corporation Ltd has reported a 35 per cent increase in consolidated net profit of ₹175 crore for 2014-15 against ₹130 crore in the previous fiscal. The company’s board has recommended a dividend of ₹6, or 60 per cent a share.

The company said the restriction over its limestone mining activity in Rajasthan has not been lifted yet. “Substantial quantity of limestone had to be outsourced at higher prices at Chanderia (in Rajasthan) as the limestone raised through mechanical mining was insufficient. Due to non-availability of sufficient quantity of limestone, clinker production at Chanderia had to be curtailed, adding to the production cost,” the company said in a statement.

The company further said: “Pursuant to the interim order by the Supreme Court, the Central Building Research Institute (CBRI) submitted its final report on the study of mining and blasting activities on September 30, 2014. The report concluded that vibrations and air pressures, induced by blasting at mines of Birla Cement Works and the adjoining mines, were well within safe limits as per national and international standards. The institute also made some recommendations… The matter is pending for final hearing”.

The company’s cost of power generation went up in 2014-15. The company said that owing to non-availability of linkage coal in time, it had to procure coal from the open market, including imports, at a substantially higher cost. Meanwhile, the grid power rates have also gone up. The company has lost its coal block in Madhya Pradesh after the Supreme Court’s order on cancellation of its allotment. The Birla Corporation stock closed 4.41 per cent down at ₹405.60 on the BSE on Thursday.

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