Weak demand in its prime markets like Uttar Pradesh and across North India saw Birla Corporation – the flagship company of the MP Birla Group – report an over 70 per cent decline in standalone net profit to ₹28 crore for April to June quarter of FY-18.
The company had reported a net profit of over ₹94 crore in the year-ago period.
Despite the 6 per cent year-on-year increase in total income to ₹1,108 crore for Q1FY18, the company’s margins remained subdued due to weak demand.
Earnings before interest, depreciation, tax and amortisation (Ebidta), during the quarter under review, saw a 32 per cent Y-o-Y drop to ₹123 crore (₹180 crore).
According to Harsh V Lodha, Chairman, MP Birla Group, there was unforeseen disruption in some key markets where the company operates. “It was also a quarter of major consolidation and capacity building,” he said.
Banking primarily on its thrust for a value added portfolio, the jute division of Birla Corporation reported a cash profit of ₹5.53 crore for Q1FY18, a 19 per cent dip against the corresponding quarter last fiscal.