High cost hurts Birla Corporation
Calcutta: High transportation and fuel costs and low demand in certain markets affected the consolidated third-quarter earnings of Birla Corporation.
The company suffered a consolidated loss of Rs 21.84 crore compared with a loss of Rs 41.29 crore in the corresponding previous quarter.
Revenue from operations during the quarter was Rs 1,389.32 crore compared with Rs 1232.44 crore a year ago, a growth of 12.73 per cent.
The company said the factors that have affected operations during the quarter were the non-availability of railway rakes, which were diverted to carry coal to power plants. This disrupted the supply of both coal and clinker. Further, fuel costs went up by 25 per cent because of the rise in coal and pet-coke prices and non-availability of linkage coal.
While the company registered a 22 per cent growth in cement production during the quarter, prices in markets such as Rajasthan, Haryana and Delhi/NCR region fell on account of low demand. This came in the way of recovering the increase in power, fuel and transportation cost.
Kesoram Industries has suffered a third-quarter net loss of Rs 43.17 crore against a loss of Rs 74.67 crore in the year-ago period. Revenue from operations stood at Rs 883.01 crore against Rs 987.37 crore a year ago. The tyre business contributed Rs 367.38 crore to the company's earnings, down 2.7 per cent on a year-on-year basis.