Birla Corporation witnessed a nearly eight percent surge in its shares on May 6, propelled by a remarkable 128 percent increase in net profit for the quarter ending March 31, 2024. The company reported a consolidated net profit of Rs 193.34 crore in Q4FY24, marking a substantial growth from Rs 84.95 crore recorded in the corresponding quarter of the previous year.
Furthermore, the total revenue rose by eight percent to Rs 2,463 crore during the quarter, compared to Rs 2,656 crore in the March quarter of FY23.
By 12:55 pm, Birla Corporation shares were trading at Rs 1,594 on the NSE, reflecting a 2.2 percent increase from the previous session’s closing price.
According to the management, cement demand is expected to remain subdued due to the general elections followed by the monsoon season. Weak demand and volume pressure from major players have kept cement prices low, with little expectation of improvement.
The company’s board of directors also greenlit a grinding capacity expansion project of 1.4 million tonnes per annum (mtpa) at its existing Kundanganj location, involving an investment of Rs 425 crore. The project, slated for completion in 24 months, will be financed through internal accruals. Birla Corporation aims to boost its grinding capacity to 25 mtpa by FY27, up from the current 20 mtpa.
Notably, the company’s capacity utilization surged by 8 percentage points year-on-year, reaching 97 percent in the quarter under review compared to 89 percent in Q4FY23.
Over the past six months, Birla Corporation shares have gained approximately 21 percent, outpacing the Nifty 50 index, which advanced about 16 percent during the same period.
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