Informist, Wednesday, May 12, 2021

KOLKATA – Benign finance costs and increase in sales volume, backed by tax credit, helped Birla Corp Ltd post a 28% on-year increase in its consolidated net profit at 2.49 bln rupees for the quarter ended March.

The net profit in the corresponding period of the last financial year stood at 1.94 bln rupees.

Led by a 24.5% jump in sales volume at 4.17 mln tn, revenue from operations rose 26.2% to 21.32 bln rupees during the quarter under review as against 16.89 bln rupees in the year ago period.

The company has classified 578.5 mln rupees as an exceptional item which has been adjusted with the net profit. This item represents the adjustment on account of reassessment of value of certain intangible assets based on the probability of expected future benefits embodied in the assets flowing into the company.

It has also considered reversal of net deferred tax liability of 469 mln rupees as tax credit while arriving at the net profit for Jan-Mar of the last financial year.

During the 2020-21 (Apr-Mar), the company’s profit soared by 24.8% on year to 6.30 bln rupees, despite a 1.9% on-year fall in sales at 67.85 bln rupees. The growth in profit is primarily led by savings in finance costs, transportation and forwarding expenses and employee benefit expenses.

During the financial year, sales volume declined by 1.8% to 13.39 mln tn as against the sale of 13.64 mln tn of cement in 2019-20 which affected the revenue.

Birla Corp's gross borrowings stood at 40.46 bln rupees at the end of March 2021 as against 42.81 bln rupees during March 2020. The company’s borrowing cost for the year ended Mar 31 was 7.83% inclusive of hedging cost for foreign exchange loans, compared with 9.26% for the previous year.

Earnings before interest, tax, depreciation and amortisation grew by 8.87% on year at 4.05 bln rupees during the fourth quarter of the last financial year while for the 2020-21 financial year, it grew by 1.13% at 14.37 bln rupees. Incidentally, it is the highest ever earnings before interest, tax, depreciation and amortisation the company registered in any financial quarter.

The company has recommended a dividend of 10 rupees per share.

At the end of the day’s trade, shares of Birla Corp closed at 1,042.95 rupees, up by 4.8% on the National Stock Exchange.

End

Reported by Avishek Rakshit

Checked by Vijay Malkar

Edited by Maheswaran Parameswaran

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