Birla Corp's PAT jumps 200% to Rs81cr in Q3FY20; stock rises 3.5%

Birla Corp's PAT jumps 200% to Rs81cr in Q3FY20; stock rises 3.5%
Birla Corporation Ltd. has posted a net profit of Rs81cr in the quarter ended 31 December, 2019, up 200% yoy on the back of a revenue growth of 10.65% yoy (Rs1,735cr including other income).
This was achieved in the backdrop of muted growth in sales by volume and realization sequentially. Cement prices in key markets in northern and central India weakened from the September quarter; in eastern India. cement prices dropped sharply in the three months till December. Thus, while the total sales by volume for the December quarter grew 7% yoy to 3.43mn tons. Realization per ton grew 3.49% to Rs 4,712.

Birla Corporation's capacity utilization has been among the highest in the cement industry for several quarters on the trot. Capacity utilization for the December quarter at 87% was up five percentage points over that ofthe previous year.

EBITDA for the December quarter at Rs315cr was 44% higher yoy, while cash profit went up 73% to Rs217cr. EBITDA per ton (for the Cement Division) for the December quarter grew 44% yoy from Rs589 to Rs850, while EBITDA margin for the quarter expanded to18.1% from 13.9% a year earlier.

Capacity utilization for the nine months till December at 88% is up four percentage points over the previous year. Sales by volume for the nine-month period rose 5% year-on-year to 10.28 million tons. 

Stock View:

Birla Corporation Ltd is currently trading at Rs757.75 up by Rs27.2 or 3.72% from its previous closing of Rs730.55 on the BSE.

The scrip opened at Rs733 and has touched a high and low of Rs770 and Rs729.15 respectively. So far 4,19,379 (NSE+BSE) shares were traded on the counter.

The current market cap of the company is Rs5,625.97cr.

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