Stocks in focus today: Birla Corporation’s share price was locked at the 20% upper circuit limit during Monday’s trade on May 12, reaching ₹1,068 apiece, after the company concluded FY24-25 with robust quarterly production and sales volumes. This led to a 33% year-on-year (YoY) rise in consolidated net profit for the March quarter (Q4FY25), reaching ₹257 crore.
This strong performance followed three challenging quarters that had impacted the entire industry. An uptick in demand and pricing during the quarter resulted in better realizations and a high-capacity utilization rate of 105% in Q4.
Although realization for the quarter stood at ₹5,103 per ton—marginally lower than the ₹5,178 per ton recorded in the same period last year due to a changed geographical mix—consolidated revenue for the quarter rose 7% YoY to ₹2,863 crore.
EBITDA per ton rose to ₹1,014 in Q4FY25, one of the highest in recent years. This reflects a 5% YoY increase and a 78% sequential jump. The Cement Division’s operating profit margin improved to 20% in Q4, up from 18.6% in the same period last year, and averaged 14% for the full year (compared to 15.5% in FY23-24), according to the company’s March quarter earnings report.
Cement sales volume grew 8% YoY in the March quarter to 5.2 million tonnes. For FY24-25, the company sold 18.1 million tonnes of cement, up 2.5% from 17.6 million tonnes in the previous year. However, full-year consolidated revenue declined 4% to ₹9,312 crore.
Full-year profit down 30% despite Q4 recovery
Despite the sharp turnaround in Q4, consolidated net profit for the full year fell 30% YoY to ₹295 crore. Through robust cash flow generation, the company reduced its net debt to ₹2,244 crore at the end of March, down from ₹3,003 crore a year earlier. The cost of borrowing stood at 7.56%, down 35 basis points year-on-year.
The cement industry faced unprecedented pricing pressure during the first eight months of FY24-25, with prices falling by an average of 11% until December. For the full year, average prices were estimated to be 4–5% lower than the previous year.
As a result, Birla Corporation’s average price realization for the year was 7% lower, at ₹4,866 per ton. Cement manufacturers’ profit margins are estimated to have contracted by 130–180 basis points in FY24-25 due to weak pricing.
Birla Corporation Limited, part of the MP Birla Group, was incorporated in 1919 as Birla Jute Manufacturing Company Limited. The company has interests in both cement and jute goods.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
