Birla Corporation Battles Losses Amid Market Challenges

M P Birla Group's Birla Corporation Ltd reported a net loss of Rs 25.2 crore for Q2 2024, citing weak cement prices and decreased demand in the jute sector. Revenues dropped significantly, impacted by a traditionally weak monsoon quarter and operational cutbacks in the jute division.

The M P Birla Group's Birla Corporation Ltd has announced a net loss of Rs 25.2 crore for the second quarter ending in September 2024. This downturn is attributed to weakening cement prices and sluggish demand in the jute industry.

A year ago, the company had reported a significant profit of Rs 58.37 crore for the same quarter. In the latest financial results, Birla Corporation's revenues from operations dropped by 14.52 percent to Rs 1,952.56 crore, compared to Rs 2,284.34 crore recorded in the corresponding period last year.

The company has also seen a 10.24 percent decline in total expenses for the quarter, alongside a significant drop in revenue from its cement and jute businesses. A weak monsoon led to a sluggish cement market, forcing operational cutbacks in the jute division.

(With inputs from agencies.)