Birla Corporation (500335) Q4 01/02 earnings summary

Executive summary

• FY02 turnover rose 10.05% to ₹1,123.91 crore; cash profit before depreciation and tax increased to ₹34.44 crore, while net loss narrowed to ₹0.76 crore from ₹13.13 crore.

• Improved cement realisations, higher production and cost controls supported results; lower interest costs also helped, but higher input costs and labour disruptions constrained performance.

• No dividend was recommended due to the annual loss.

Financial highlights

• Total income rose 9.70% to ₹1,145.30 crore; operating profit increased 7.57% to ₹70.65 crore, while interest expense fell to ₹36.21 crore from ₹43.71 crore.

• Loss before tax was ₹0.72 crore and net loss was ₹0.76 crore, versus ₹13.11 crore and ₹13.13 crore, respectively, in FY01.

• Consolidated net loss was ₹0.97 crore and consolidated EPS was negative ₹0.12; standalone EPS was negative ₹0.10 versus negative ₹2.17.

• Exports declined to ₹57.74 crore from ₹72.51 crore, with lower Nepal cement shipments and negligible Bangladesh sales.

Outlook and guidance

• Cement demand outlook was supported by infrastructure and housing plans; the Planning Commission working group projected industry demand of 165.56 million tonnes by FY07.

• Raebareli grinding capacity expansion from 3.60 lakh to 6.30 lakh tonnes per year was underway, with completion expected by August 2002.

• Jute operations were to emphasize value-added products amid weak sacking demand; reopening and stable operations at the mills remained priorities.

• Carbide and Vinoleum outlooks remained weak due to low-priced imports, while the Synthetics unit remained suspended.