- 09 Aug 2024
- ICICI Securities
LOWER SALES REALISATION IMPACTED PROFITABILITY
BIRLACORPN - 1335 Change: 66.00 (5.20 %)News: Consolidated revenue de-grew by 9.1% YoY (-17.5% QoQ) to Rs 2190 crores, primarily driven by drop of 8.4% YoY (-8.7% QoQ) in sales realisation, coupled with a drop of 0.7% YoY (-9.7% QoQ) in cement volumes to 4.4 million tonnes. EBITDA/ton decreased by 12.7% YoY (-39.5% QoQ) to Rs 590/ton, despite lower cost/ton. EBITDA declined by 13.1% YoY (-45.3% QoQ) to Rs 258.3 crores. PAT declined by 45.4% YoY (-83.1% QoQ) to Rs 32.6 crores.
Views: Operating performance was below the expectation, particularly due to lower-than expected cement volumes & sales realisation. At present, Birla Corp cement capacity stood at 20 mtpa. Going ahead, we believe Birla Corp is likely to improve its performance, led by strong volume growth (driven by capacity expansion plans of 1.4 mtpa in Kundangunj & ramp up of Mukatban facility) & increase in EBITDA/ton (led by focus on operational efficiency measures like increase in share of green power, increase in usage of premium products, & operating leverage advantage).
Impact: Negative