Birla Corporation slips into red
Birla Corporation, the flagship company of the MP Birla group, on Saturday reported a loss of Rs 50 crore for the third quarter ended December 31 as the company’s profitability was impaired by high fuel costs.
The company had posted a profit of Rs 60 crore in the corresponding previous period.
The company clocked a revenue of Rs 2,024 crore during the quarter, up 15.2 per cent from Rs 1,757 crore in the corresponding quarter of the previous year.
“Production cost of cement for the December quarter was 12 per cent higher than the same period last year owing primarily to power and fuel resulting in lower cash profit on a comparable basis,” the company said in a statement.
The cement major is optimising its fuel consumption mix to mitigate the cost pressure and is hoping to realise the benefits in the January-March quarter.
“Pet coke prices have fallen by about 12.5 per cent from the end of September and domestic coal prices have corrected by about 20 per cent during the same period. Further correction is expected in fuel prices, which in turn, will improve the company’s profitability,” the statement said.
A boost in the availability of coal is expected with the company receiving clearances in January to raise production at its Sial Ghogri mine from 3 lakh tonnes per annum to 3.75 lakh tonnes per annum. Production at Birkam coal mine is expected to start in the second quarter of the next fiscal.