BIRLA CORPORATION SHARES JUMP 8% AS Q4 PROFIT MORE THAN DOUBLES ON-YEAR

Shares of Birla Corporation gained almost eight percent in trade on May 6, following a 128 percent surge in net profit for the quarter ended March 31, 2024. Birla Corporation posted a consolidated net profit of Rs 193.34 crore in Q4FY24, up 127.6 percent on-year from Rs 84.95 crore in the same quarter year-ago period.

Additionally, the total revenue jumped eight percent to Rs 2,463 crore during the quarter, higher compared to Rs 2,656 crore during the March quarter of FY23.

At 12.55 pm, Birla Corporation shares were quoting Rs 1,594 on the NSE, up by 2.2 percent from the previous session's closing price.

Follow our market blog to catch all the live updates

The management said cement demand is likely to be subdued as a result of the general elections, followed by the monsoons. Cement prices have been weak and are not likely to improve due to weak demand and volume push by major players.

The board of directors also approved a grinding capacity expansion plan of 1.4 million tonnes per annum (mtpa) at its existing location, in Kundanganj, with an investment of Rs 425 crore.

The project is likely to be completed in 24 months and will be funded through internal accruals. The company targets raising the grinding capacity to 25 mtpa by FY27 from 20 mtpa currently.

Birla Corporation's capacity utilisation increased by 8 percentage points on-year, from 89 percent in Q4FY23 to 97 percent in the quarter gone by.

Over the past six months, shares of the company have gained around 21 percent. In comparison, the Nifty 50 index has advanced about 16 percent during the same time period.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

2024-05-06T07:48:03Z dg43tfdfdgfd