Increase in coal prices, lower realisation and disruption of operations have impacted profits of Kolkata-headquartered Birla Corporation Ltd.
The flagship company of the MP Birla Group reported a little over 62 per cent drop in net profit to approximately Rs 26 crore for the July to September quarter this fiscal from nearly Rs 69 crore in the corresponding period last year. The Board of Directors of the company on Monday declared an interim dividend of Rs 2.50 per share of Rs 10 each for the Financial Year 2011-12.
According to a company release, cash profit during the second quarter was down by 53 per cent to Rs 47 crore ( Rs 102 crore) because of lower realisation following disruptions at its Chanderia (Rajasthan) unit. It also suffered foreign exchange fluctuation losses of nearly Rs 14 crore during the quarter.
Turnover during the period, however, stood at Rs 578 crore – over 5 per cent higher than the corresponding quarter last year.
Mr Harsh Lodha, Chairman, Birla Corporation Limited, said that the overall economic slowdown has impacted the performance of the industry during the quarter. The hike in lending rates by banks has depressed the growth in cement demand from the real estate sector with big projects being delayed in major metropolitan cities, the release stated.
Birla Corp shares on Monday closed at Rs 321.40, up 1.34 per cent, at the BSE.