Birla Corporation Ltd, the flagship company of the M P Birla Group, has reported a robust financial performance for the fourth quarter of FY2024-25, with a 32.8% year-on-year (YoY) increase in net profit to ₹256.6 crore. The company attributes this growth to higher capacity utilization and improved realizations, driven by an uptick in demand and pricing.
Financial Highlights
- Revenue from operations rose 6.1% YoY to ₹2,815 crore, compared to ₹2,654 crore in the previous fiscal.
- EBITDA surged 13.1% to ₹534 crore, with the EBITDA margin expanding to 19% from 17.8%.
- Net profit margin improved to 9.27%, up from 7.42% in the same period last year.
- Debt reduction: The company successfully lowered its net debt to ₹2,244 crore, down from ₹3,003 crore a year earlier.
Operational Performance
Birla Corporation achieved 105% capacity utilization in the March quarter, reflecting strong demand and operational efficiency. The cement division’s operating profit margin stood at 20%, compared to 18.6% in the same period last year.
Dividend Declaration & Expansion Plans
The board has recommended a dividend of ₹10 per share (100%) on 7,70,05,347 ordinary shares for FY2024-25, subject to shareholder approval. Additionally, the company has announced a capital expenditure plan to enhance its cement production capacity, including the establishment of a greenfield cement grinding unit in Gaya, Bihar, with a capacity of 2.80 million tonnes per annum, to be implemented in phases.
Market Performance
Following the announcement, shares of Birla Corporation Ltd closed at ₹1,060, marking a 0.41% increase on the Bombay Stock Exchange (BSE).
With a strong financial outlook and strategic expansion plans, Birla Corporation continues to reinforce its position as a leading player in the cement industry.
