Birla Corporation Reports Significant Profit Decline Amid Weak Cement Prices and Jute Industry Downturn

Birla Corporation Ltd, part of the M P Birla Group, experienced a 45.36% decline in consolidated net profit for the first quarter of 2024. The dip was due to weak cement prices, decreased demand, and challenges in the jute industry. Revenue and total consolidated income also fell during this period.

Birla Corporation Ltd, an M P Birla Group firm, reported a steep decline of 45.36% in its consolidated net profit for the first quarter ending June 2024, amounting to Rs 32.62 crore. The company attributed this decline to weak cement prices, reduced demand, and an unprecedented downturn in the jute industry.

In comparison, the firm posted a net profit of Rs 59.71 crore during the same period last year, as per a regulatory filing. Revenue from operations also dropped by 9% to Rs 2,190.37 crore, down from Rs 2,407 crore a year back.

While total expenses decreased by 7.81% to Rs 2,163.41 crore, the company highlighted that revenue from its cement business declined 8% and its jute business suffered a severe 32.37% drop due to fewer government orders and logistical issues affecting exports. Shares of Birla Corporation closed at Rs 1,426.20 on BSE, reflecting a 2.44% dip.

(With inputs from agencies.)