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M P Birla group flagship, Birla Corporation, recorded a net profit of Rs 109.14 crore in the October to December quarter (Q3FY24) on a consolidated basis, compared to a net loss of Rs 49.91 crore in the year-ago period.
The company attributed it to improving operating efficiency, cost savings, and scaling up of Mukutban operations.
Revenue on a consolidated basis stood at Rs 2,328.31 crore in Q3FY24, up by 14.7 per cent from Rs 2,024 crore in the year-ago period.
In Q2FY24, the company’s revenue was at Rs 2,313.23 crore and net profit at Rs 58.37 crore.
Commenting on the company’s performance, Harsh V Lodha, Chairman, Birla Corporation, said, “The results are a reflection of our focus on improving operating efficiency in all parameters. We are firmly focused on reducing costs, improving capacity utilisation and realisation through a balanced brand portfolio, with equal emphasis on premium and value segments, geo-mix and go-to-market supply chain optimisation, and accelerated ramp-up of Mukutban.”
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Having established a strong base across North India, Lodha said, the company was now ready for the next phase of its journey to become a 30-million-ton player by 2030.
However, sales and realisation were impacted by unseasonal heavy rainfall in November in Uttar Pradesh, Madhya Pradesh, Rajasthan, and Maharashtra. Operations were also disrupted by assembly elections in November in Madhya Pradesh and Rajasthan, the company said.
Prices raised in September-October had to be partially rolled back later in the quarter, the company added.
On the outlook, the company said that demand remained subdued through January and the spurt usually seen in the fourth quarter was largely missing, due to extreme winter and fog across North India. “As a result, prices have remained soft and dipped a bit in the last few days.”
The company expects volumes to pick up in the coming days, but the announcement of general elections and the imposition of the model code of conduct may impact demand.
The company’s jute division was impacted by poor demand in the domestic and overseas markets. The division reported a cash profit of Rs 1.38 crore in the December quarter against Rs 7.04 crore a year ago.
“However, the demand and pricing scenario are improving and it is expected that performance in the March quarter is going to be significantly better,” the company said.
