Mumbai: Birla Corporation’s stock jumped 20 per cent on Monday, May 12, after it posted better-than-expected fourth-quarter results. The company saw higher profit and better revenue, helped by lower costs and better cement prices. Net profit rose 33 per cent from last year, while revenue was up 6.1 per cent.
Cement Prices and Profits Improve
Cement prices rose 7 per cent compared to the previous quarter. This helped the company earn more profit per ton of cement. EBITDA per ton increased to Rs 1,014, up from Rs 569 in the previous quarter and Rs 964 last year. This is the highest in 18 quarters.
Cement Volumes Grow
Birla Corp sold more cement in the fourth quarter. Cement sales rose to 5.25 million tons, up from 4.5 million tons in the December quarter and 4.85 million tons a year ago.
Debt Reduction Brings Relief
The company reduced its net debt to Rs 2,244 crore from Rs 3,003 crore a year ago. This helped lower its borrowing costs by 35 basis points. Lower debt means the company is financially stronger.
Expansion Plans for Future Growth
The board has approved plans to increase cement production from 20 million tons per year to 27.6 million tons by 2029. It will spend Rs 4,330 crore on this plan. The cost of expansion is also reasonable, at USD 82 per ton.
Stock Still Attractively Valued
Even after the price jump, the stock trades at USD 65 per ton in terms of enterprise value. Many analysts see value in the stock. Out of 21 analysts, 18 have a “buy” rating and 3 have a “hold” rating.
Stock Reverses 2025 Losses
With Monday’s rise, Birla Corp’s stock has wiped out all its 2025 losses. It is now up for the year, though it remains 24 per cent below its 52-week high.
