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News18
a day ago
- Business
- News18
Birla Corporation Q1 profit jumps 3-fold to Rs 119.57 cr, revenue rises 12 pc
New Delhi, Jul 30 (PTI) M P Birla Group firm Birla Corporation Ltd on Wednesday reported an over three-fold increase in its consolidated net profit at Rs 119.57 crore in the June quarter of FY26, helped by improved cement sales, lower operating cost and a turnaround in its jute business. It had posted a net profit of Rs 32.62 crore in the April-June period a year ago, Birla Corporation said in a regulatory filing on Friday. Birla Corporation's revenue from operations was up 12.04 per cent to Rs 2,454.22 crore in the June quarter. It was at Rs 2,190.37 crore in the corresponding period a year ago. During the reporting quarter, Birla Corporation's consolidated EBITDA grew 38 per cent to Rs 379 crore. 'The growth in EBITDA was the result of improved cement sales, lower operating cost and a turnaround in jute," it said. Total expenses of Birla Corporation was at Rs 2,308.78 crore, up 6.71 per cent year-on-year. Birla Corporation's revenue from cement business was up 10.4 per cent to Rs 2,341.86 crore in the June quarter. Its sales volume was up 9.36 per cent to 4.79 million tonnes (mt). 'The Cement Division's operating profit margin for the quarter was at 14.7 per cent compared to 12.5 per cent in the same period last year. Combined with flat prices, the Cement Division's profitability for the June quarter was impacted by extended maintenance shutdowns," it said. Revenue from the jute segment was up 62.85 per cent to Rs 112.47 crore. The Jute Division had a 'significant turnaround in the June quarter with a Rs 6.4 crore cash profit against a loss of Rs 3.9 crore in the same period last year, driven by a strong growth in sales, both in domestic and overseas markets", the company said. The division registered a 63 per cent year-on-year growth in local sales, and 133 per cent growth in exports in value terms. The total income of Birla Corporation, which includes other income, was at Rs 2,486.16 crore, up 12.62 per cent year-on-year. Shares of Birla Corporation Ltd on Wednesday settled at Rs 1,380.95 on BSE, down 8.66 per cent from the previous close. PTI KRH HVA view comments First Published: July 30, 2025, 18:00 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Al-Ahram Weekly
19-07-2025
- Business
- Al-Ahram Weekly
Taming cement prices - Economy - Al-Ahram Weekly
Egypt's cement factories are to operate at full capacity to cover local demand and limit price increases On the back of a major increase in cement prices, coupled with a shortage of supply, Kamel Al-Wazir, the deputy prime minister and minister of trade and industry, has instructed Egypt's cement factories to work at full capacity. Cement prices have been following an upward trend, recording around an 85 per cent year-on-year increase to surpass LE4,000 per ton. Al-Wazir gave cement companies nationwide a one-month grace period to restart idle production lines and address challenges hindering production, considering it a top priority to meet domestic market demand. Surplus production may be exported once local needs are fulfilled, he said. He added that sales prices at the factory and to the final consumer must be recorded on cement bags. In July 2021, the Egyptian Competition Authority (ECA) approved a request submitted by 23 cement companies to work at a percentage of their total capacity due to the oversupply in the local market, leading to a decline in the value of local sales. The decision was extended twice and has continued to be renewed annually since then. However, following the recent surge in cement prices, the ECA suspended the decision to reduce production for the two months of May and June. Reactivating idle capacity is meant to ensure that the production of cement, a strategic commodity, continues without disruption and to stabilise the market. It will make cement available in adequate quantities and at suitable prices, restore supply and production chains, and protect consumer rights, the Industry Ministry stated. Ahmed Al-Zeini, head of the Building Materials Division at the Chamber of Commerce, said that the recent price rises were due to a reduction in production capacity, making it difficult to meet market demand. When production was first curtailed, the price of cement stood at LE800 per ton, he said, expecting prices to decline once full capacity is restored. Ahmed Sherine Karim, head of the Cement Division at the Federation of Egyptian Industries, attributed the price increase to a sudden spike in demand, coupled with low production due to maintenance work at several factories and the stoppage of nine production lines, which had caused a supply shortage. Medhat Stephanous, former head of the Cement Division at the Federation of Egyptian Industries, said that a cause of the price hikes had been the surge in demand for cement abroad. Egypt's monthly cement production amounts to approximately five million tons, of which four million are allocated to the domestic market. One million tons are exported monthly to different markets. According to the Building Materials Export Council, Egypt exports cement to 95 countries, with African countries topping the list. Exports have increased over the past three years, rising from $465 million in 2021 to $670 million in 2022, marking a 44 per cent increase. Exports reached over $770 million in 2023, a growth rate of 14 per cent, and climbed to $913 million in 2024. Cement companies had halted exports for several years due to high local production costs, which made Egyptian cement less competitive. The energy crisis in Europe caused by the Russia-Ukraine war had prompted countries such as Turkey and Spain to halt cement exports. Stephanous said that the recent price hikes were due to increased costs as a result of the appreciation of the dollar against the pound, leading to higher fuel costs and a rise in shipping expenses due to regional geopolitical tensions. The Ministry of Industry, in coordination with the relevant authorities, said it will carry out a nationwide inspection campaign of all Egypt's cement factories to ensure compliance with the directive to operate all licensed production lines. Stephanous noted that returning to full production capacity will take time, with the production lines requiring maintenance. Al-Zeini said that resuming full production would help to restore market stability by September. * A version of this article appears in print in the 17 July, 2025 edition of Al-Ahram Weekly Follow us on: Facebook Instagram Whatsapp Short link:
