Quarterly Financial Results Summary

Operational Performance

  • Cement sales volume: 5.05 million tons (up 5.4% YoY from 4.79 million tons)
  • Capacity utilization: 98% (compared to 99% in same period last year)
  • Premium cement sales volume: up 18% year-on-year
  • Sales through trade channel: up 11% year-on-year, accounting for 82% of total sales
  • Kundanganj unit sales: up 26% year-on-year
  • Mukutban unit sales: up 12% year-on-year

Financial Performance

| Metric | Q1 FY26-27 (₹ crore) | Q1 FY25-26 (₹ crore) | Change |

| Revenue | 2,669 | 2,486 | 7.4% |

| EBITDA | 365 | 379 | -3.6% |

| Cash Profit | 298 | 308 | -3.2% |

| Net Profit | 116 | 120 | -3.3% |

Cement Division Metrics

  • Realization per ton: ₹4,947 (up 1.8% YoY from ₹4,858)
  • EBITDA per ton: ₹675 (down 5.6% YoY from ₹715)
  • EBITDA margin: 13.6% (down 110 basis points YoY)
  • Blended cement contribution: 88% of total cement sales (volume growth of 5%)
  • Perfect Plus brand growth: 24% year-on-year

Cost Structure

  • Power and fuel cost: increased by 5% year-on-year
  • Green power consumption: 33% of total power (up from 31% at end of last fiscal)

Strategic Initiatives

  • 5-MW solar power plant commissioned at Mukutban unit
  • Expected CO2 emission reduction: 5,000 tons per year
  • Birla Jute Mills solar capacity expansion: from 2.1 MW to 2.6 MW

Market Context

  • Cement demand grew moderately in June quarter, gaining momentum from second-half of May
  • Primary growth driver: Government spending on infrastructure
  • Price hikes introduced in April-May were rolled back in June due to intense competition
  • Cement prices remained under pressure throughout the quarter

Jute Division Performance

  • Production declined 27% year-on-year and 8% sequentially
  • Raw jute prices reached record high with acute shortage and supply disruption
  • Division rationalized production by reducing working days
  • Cash profit: ₹4.28 crore (compared to ₹6.41 crore in same period last year)
  • Domestic sales (by revenue): increased 18% year-on-year
  • Overseas sales (by revenue): increased 13% year-on-year

Outlook and Guidance

  • Cement demand expected to remain muted until end of monsoons in August
  • Recovery expected from September boosted by Government spending and private construction
  • Further price hikes deferred till end of monsoons
  • Realization expected to remain weak in near term
  • Meaningful price recovery expected only in December quarter
  • Energy prices continue to edge upward
  • Capacity overhang and intense competition among manufacturers persist

Company Background

  • Flagship company of MP Birla Group, incorporated as Birla Jute Manufacturing Company Limited in 1919
  • Business interests: cement and jute goods
  • Birla Jute Mills: first jute mill started by an Indian entrepreneur
  • Total cement capacity: 21.4 million tons annually across 10 plants in 8 locations through company and subsidiary RCCPL Pvt Ltd
  • Product range: array of cement products under MP Birla Cement brand, construction chemicals, and wall putty