Financial Performance Summary

Quarterly Performance (Q2 FY27 vs Q2 FY26):

  • Revenue: ₹2,441 crore (up 9.3% from ₹2,233 crore)
  • EBITDA: ₹254 crore (down 23.6% from ₹332 crore)
  • Cash Profit: ₹190 crore (down 28.3% from ₹265 crore)
  • Net Profit: ₹37 crore (down 58.9% from ₹90 crore)

Half-Yearly Performance (H1 FY27 vs H1 FY26):

  • Revenue: ₹5,111 crore (up 8.3% from ₹4,720 crore)
  • EBITDA: ₹619 crore (down 12.8% from ₹710 crore)
  • Cash Profit: ₹488 crore (down 14.8% from ₹573 crore)
  • Net Profit: ₹153 crore (down 27.1% from ₹210 crore)

Cement Division Performance

Volume and Realization:

  • Cement sales volume: 4.54 million tons (up 7% YoY)
  • Realization per ton: ₹4,925 (up 2% YoY but marginally lower sequentially)
  • Capacity utilization: 85% (same as last year)

Cost Pressures:

  • Clinker cost: Increased 13% YoY
  • Power and fuel cost: Increased 15% YoY
  • Pet coke prices: Rose 64% over same period last year
  • Cement Division EBITDA per ton: ₹482 (down 32.3% from ₹712)
  • Cement Division EBITDA margin: 9.8% (down 490 basis points YoY)

Regional Price Trends:

  • East India: Cement realization declined 3%
  • Central India: Realization remained flat
  • West and North India: Modest improvements witnessed

Operational Initiatives

Cost Mitigation Measures:

  • Green power consumption: Scaled to 32% (from 30% last year)
  • Bikram coal mine: Started extraction during September quarter
  • Expected coal production: 180,000 tons in H2 FY27

Product Mix Strategy:

  • Blended cement: 86% of total cement sales (4% YoY volume growth)
  • Strong growth markets: Maharashtra, Uttar Pradesh, Bihar, Rajasthan
  • New facility performance:
  • Kundanganj: Sales up 20%
  • Mukutban: Sales up 8%

Premium Product Performance:

  • Premium cement sales volume: 2.38 mt (up 17% from 2.02 mt)
  • Perfect Plus brand: 21% YoY growth
  • Trade channel premium mix: 64% (up from 61% last year)

Channel Strategy:

  • Trade channel sales: 82% (up from 79% last year)

Jute Division Performance

Financial Results:

  • Cash profit: ₹13.01 crore (up 180% from ₹4.64 crore)
  • Revenue: ₹155 crore (up 17% from ₹132 crore)
  • Operating profit: ₹6.16 crore (up 53% from ₹4.02 crore)

Operational Challenges:

  • Raw jute: Acute shortage
  • Production rationalization: Reduced working days
  • Production volume: Declined 26% YoY

Sales Performance:

  • Export sales: 143% jump
  • Shopping bags: 64% growth

Outlook

Market Conditions:

  • Cement realization: Started improving from October
  • Construction activities: Regaining momentum
  • Government spending: Expected to be key growth driver
  • Private sector construction: Gradually improving

Cost Environment:

  • Cost pressure: Expected to persist
  • Profitability: May continue to be impacted

Company Background

Birla Corporation Limited is the flagship company of the MP Birla Group with interests in cement and jute goods. The company and its subsidiary RCCPL Pvt Ltd operate 10 cement plants across eight locations with annual installed capacity of 21.4 million tons. The company produces cement products under the MP Birla Cement brand along with construction chemicals and wall putty.