On a consolidated basis, Birla Corporation's net profit surged 28.03% to Rs 249.33 crore on 26.19% increase in revenue from operations to Rs 2,132.61 crore in Q4 FY21 over Q4 FY20.
Profit before tax (PBT) fell 6.54% to Rs 179.78 crore in Q4 March 2021 as against Rs 192.37 crore in Q4 March 2020.
EBITDA grew 8.8% to Rs 405.53 crore in Q4 FY21 from Rs 372.69 crore in Q4 FY20. EBITDA per ton slipped 10.3% to Rs 937 in Q4 March 2021 as compared to Rs 1,045 in Q4 March 2020. Sales (by volume) jumped 24.5% to 4.17 million tonnes (MT) in Q4 FY21 as against 3.35 million tonnes (MT) in Q4 FY20.
The company's consolidated net profit soared 24.73% to Rs 630.14 crore on 1.88% decrease in revenue from operations to Rs 6,785.45 crore in FY21 over FY20. Overcoming massive disruptions in operations at the beginning of FY20-21 due to the COVID-19 pandemic, Birla Corporation has turned in its highest ever full-year net profit over the previous year. Due to the shortfall in sales in the first quarter, the company's revenue for the full year fell 1.6% year-on-year (Y-o-Y) to Rs 6,885.36 crore. The board has recommended a dividend of Rs 10 per share for FY20-21.
Birla Corporation made up for its loss in production and sales at the beginning of the financial year by aggressively rationalising costs. The finance cost was pared by Rs 91.39 crore (or by 23.6%) to Rs 296.28 crore. The company also benefited from the better than expected recovery in cement demand from the second quarter onwards, especially in the rural sector, which was largely the outcome of the Union government injecting cash into the economy by boosting infrastructure development.
In the wake of improved demand, Birla Corporation managed to raise prices during March quarter, which led to marginal improvement in realisation per ton, but profitability came under pressure due to a sharp increase in raw material and fuel costs.
Harsh Vardhan Lodha, the chairman of Birla Corporation, said: "In the light of the massive disruptions faced at the beginning of the financial year, FY20-21 wasn't disappointing from the standpoint of profitability. Our performance reflected the resilience we have built over the years to external shocks. We also benefited from the stimulus provided by the government. But in the wake of the second wave of the pandemic, the year ahead looks more challenging. To my mind, India's ability to contain the pandemic through rapid inoculation and other means holds the key to economic revival. The jute business continues to improve its performance with expansion of value-added products. These products deliver higher profitability on a sustainable basis."
Birla Corporation is primarily engaged in the manufacturing of cement as its core business activity. It has significant presence in the jute goods industry as well.
Shares of Birla Corporation declined 2.58% to Rs 1,016.60 on BSE. The scrip hit an intraday low of Rs 995.25 and an intraday high of Rs 1,060 so far.
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