Profit before interest, tax and other unallocable items (PBIT) has jumped 65.34% to Rs 265.35 crore. PBIT of Cement segment rose 55.39% to Rs 257.95 crore (accounting for 97.21% of total PBIT). PBIT of Jute reported profit of Rs 8.18 crore compared to loss of Rs 4.25 crore. PBIT of Others segment fell 38.10% to Rs -0.78 crore (accounting for -0.29% of total PBIT).
PBIT margin of Cement segment rose from 13.96% to 15.58%. PBIT margin of Jute segment rose from negative 13.05% to 8.74%. PBIT margin of Others segment rose from negative 132.63% to negative 96.30%. Overall PBIT margin rose from 13.12% to 15.16%.
Operating profit margin has jumped from 19.08% to 19.64%, leading to 47.39% rise in operating profit to Rs 343.60 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 12.54% to 13.74%. Purchase of finished goods cost rose from 0.19% to 0.27%. Employee cost decreased from 7.60% to 5.87%. Other expenses rose from 59.53% to 61.53%. Power and Oil fuel cost rose from 18.02% to 20.18%. Freight charges rose from 22.24% to 22.52%.
Other income fell 51.16% to Rs 9.3 crore. Provision for interest fell 20.07% to Rs 63.92 crore.
Provision for depreciation rose 12.24% to Rs 98.4 crore. Profit before tax grew 125.49% to Rs 190.58 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 49.07 crore, compared to Rs 18.75 crore. Effective tax rate was 25.75% compared to 22.18%.
Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 115.16% to Rs 141.51 crore.
Promoters' stake was 62.90% as of 30 June 2021 ,compared to 62.90% as of 30 June 2020 .
Management commentary
Commenting of the performance Mr Harsh V Lodha Commented The Company has exhibited resilience in posting a strong quarter in the midst of significant challenges. Demand for cement barring the seasonal monsoon remains strong, somewhat undeterred by the pandemic and its impact on the Indian economy. With the commissioning of Mukutban project now clearly in sight, the Company will embark on the next phase of growth to enhance its capacity to 25 Million Tons.
Mr. Arvind Pathak the Managing Director & Chief Executive Officer of the company said that A good kharifcrop should boost farm income and as the monsoon abates, it is expected that cement companies will be able to pass on a portion of substantial price increase in input costs. He also said that the effort to ramp up the manpower availability at the Mukutban project will enable the company to complete the project in the shortest possible time frame. We are confident now that the project will be commissioned in the fourth quarter of the current financial year,
Birla Corporation : Consolidated Financial Results
Birla Corp : Consolidated Segment results
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