New Delhi, Feb 4 (PTI) M P Birla group firm Birla Corporation Ltd on Friday reported a decline of 59.27 per cent in its consolidated net profit at Rs 60.45 crore in the third quarter ended December 2021 due to contraction in cement demand and rise in input costs.

It had posted a net profit of Rs 148.42 crore in the October-December quarter a year ago, Birla Corporation said in a BSE filing.

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Its revenue from operation was down 1.49 per cent to Rs 1,750.06 crore during the quarter under review as against Rs 1,776.62 crore.

"Profitability of Birla Corporation Limited's Cement Division for the December quarter was seriously impacted by weak demand and a sharp rise in variable costs. Power and fuel cost per tonne went up by 39 per cent year-on-year and 20 per cent sequentially," it said.

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Its EBITDA per tonne for the cement division was down 36 per cent from the year earlier, from Rs 992 to Rs 638.

"Sales by volume in the December quarter was at 3.35 million tonnes against 3.55 million tonnes a year earlier -- a drop of 5.6 per cent. This translated into a lower capacity utilisation of 86 per cent for the December quarter against 92 per cent a year earlier," said Birla Corporation in a post earning statement.

Birla Corporation's total expenses were at Rs 1,689.14 crore, up 4.87 per cent in Q3/FY22 as against Rs 1,610.59 crore.

"The company has been taking steps across functions to mitigate the impact of rising commodity prices. These include significant scaling up of captive coal mining," it said.

Over the outlook, Birla Corporation said conditions look "favourable for a quick recovery" in demand, except in Uttar Pradesh where state elections could hobble construction activities till mid-March.

"The rabi crop has been good across all key markets of the company and it is expected to translate into robust demand. Cement prices have been raised effective third week of January, and prices, going forward, are expected to remain firm in the company's key markets," it said.

The company is primarily engaged in the manufacturing of cement as its core business activity. It has a significant presence in the jute goods industry as well.

Shares of Birla Corporation Ltd on Friday settled at Rs 1,355.30 on the BSE, down 0.29 per cent from their previous close.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)