Birla Corporation Facing Q2 Loss Amidst Monsoon Downturn

Birla Corporation Ltd, part of the M P Birla group, reported a Rs 25 crore loss for Q2 2024, contrasting with a Rs 58 crore net profit last year. Revenue fell 14.8% to Rs 1,970 crore. Sluggish cement demand and falling prices in the monsoon quarter affected performance.

The flagship company of the M P Birla group, Birla Corporation Ltd, announced on Wednesday a Rs 25 crore loss for the second quarter ending September 2024. This is a stark contrast to the Rs 58 crore net profit recorded in the same period the previous year.

The cement manufacturer saw a 14.8% decline in revenue during the July-September quarter, generating Rs 1,970 crore compared to the Rs 2,312 crore in the corresponding period of the previous year. Consolidated EBITDA also took a hit, falling from Rs 316 crore to Rs 194 crore.

The monsoon quarter traditionally witnesses weak demand, and this year proved no different as cement prices hit record lows in key markets. While capacity utilization hovered near 80%, core markets achieved close to 90%. The company remains cautiously optimistic about the next quarter, but its jute division suffered due to decreased orders domestically and internationally.

(With inputs from agencies.)