Birla Corporation is expected to see interest on Wednesday, February 5, as the company has posted its Q3 FY25 consolidated net profit at Rs 31.19 crore which is down by 71.4% YoY. The net profit for the same period as the previous year was Rs 109.14 crore.
The company explained the decline in terms of the reduced cement prices, especially in regions such as Maharashtra and central India. Realization from cement sales in Q3 at Rs 4,781 per tonne declined by 9.5% yoy while it marginally increased by 1.8% QoQ from Rs 4,697 per tonne in Q2 FY25.
Birla Corporation informed us that there was a net loss of Rs 25.19 crore during the quarter ending September this year. Total revenue for the ongoing quarter was Rs 2,272.07 crore against Rs 2,326.75 crore of the corresponding period of last year and Rs 1,969.78 crore of the immediate prior quarter.
The market conditions in the latter part of the year contributed to the 7% YoY increase in selling volume. For the Chanderia unit, the demand & P & P & P&M was good in the northern region, and for the Mukutban plant, around 20% sequential volume growth was seen at subsidiary RCCPL.
However, due to more hard competitors, Birla Corporation clearly pointed out that they maintained their premium positioning in the focus central Indian markets. The company believes that an increase in cement prices will spin a boost in the next quarter and the following one as well.
Birla Corporation Shares Target Price
Trendline reveals that analysts’ target price for the stock currently averages at Rs 1,483, which is 26% above the current price.
The overall recommendation from the last 14 analysts that have made their recommendations for the stock is the ‘Strong buying recommendation’.
Birla Corporation Shares Performance
Birla Corporation’s shares rallied by 3.15 percent and ended at Rs 1,175 on the BSE as compared to benchmark Sensex that gained 1.8 percent on Tuesday.
The stock has reduced to 22% over the period of six months as compared to the overall increase of 27% in the last two years. At present, the company is holding a market capitalization of Rs 9,053 crore.