Rising input costs dampen Birla Corporation net profit
Rising input cost and the monsoon has dampened the net profit of Birla Corporation, the flagship of the MP Birla group. Net profit declined 48.5 per cent to Rs 86 crore in the second quarter of 2021-22 from Rs 167 crore a year ago. Revenues of the cement maker increased marginally by 2.1 per cent to Rs 1,711 crore against Rs 1,675 crore in the previous similar period.
“Demand for cement was majorly impacted by the extended and heavy monsoon and shortage of sand in states such as Uttar Pradesh and Bihar. To sustain healthy market share and capacity utilisation, which was maintained at 84 per cent in the September quarter, the company had to channel its products outside its core markets, which in turn impacted realisations and profitability,” the company said.
Birla Corp was also hit by a sharp increase in fuel, raw material and packaging costs owing to the rise in commodity prices, it said.
Berger net dips 1%
Berger Paints on Wednesday reported 1 per cent decline in consolidated net profit at Rs 219.21 crore for the September quarter. Revenue from operations for the quarter ended September 30, 2021 was Rs 2,225.01 crore compared to previous year’s Rs 1,742.55 crore, representing an increase of 27.69 per cent.
The company in its regulatory filings said that its operations during the six month period ended September 30, 2021 was affected by Covid-19 pandemic and consequent lockdowns. There was also a rise in raw material costs during the quarter.
Eveready profit down
Eveready Industries on Wednesday reported a 48 per cent decline in consolidated net profit at Rs 31.04 crore for the September quarter, impacted by lower demand and higher input costs. The company had posted a profit of Rs 57.22 crore a year ago.