Birla Corporation Limited on Wednesday reported a fourth-quarter net profit of Rs 249.33 crore, up 28% from Rs 194.73 crore in the same period last year, as sales by volume jumped 24.5% to 4.17 million tons (mt). Revenue for the three months till 31 March at Rs 2,146.12 crore was up 24.9% over the previous year, which, combined with capacity utilization of 108%, made the quarter one of the best ever for the company in terms of production and sales.
Overcoming massive disruptions in operations at the beginning of FY20-21 due to the Covid-19 pandemic, Birla Corporation turned in its highest ever full-year net profit of Rs 630.14 crore, up 24.7% over the previous year.
Because of the shortfall in sales in the first quarter, the company’s revenue for the full year fell 1.6% year-on-year to Rs 6,885.36 crore. Sales by volume for FY20-21 declined 1.8% to 13.39 mt from 13.64 mt in the previous year.
The company’s March quarter EBITDA at Rs 405.53 crore and cash profit at Rs 338.16 crore were also the highest ever. The company has declared a dividend of 100% for FY20-21.
Birla Corporation made up for its loss in production and sales at the beginning of the financial year by aggressively rationalizing costs. Most notably, 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.