Birla Corporation Shares Hit 20% Upper Circuit on Strong Q4 Performance

Market Performance

Birla Corporation shares surged sharply on May 12, hitting the 20% upper circuit at ₹1,270 apiece. The rally came after the company announced a strong recovery in its Q4 FY25 earnings, reversing a sluggish trend from the earlier part of the year.

The upbeat performance sparked a positive reaction in the market, as investors responded to improved sales, profits, and operational efficiency during the March quarter.

Main News

The March quarter (Q4FY25) marked a notable turnaround for Birla Corporation, driven by rising demand and better pricing dynamics in the cement sector.

• Consolidated net profit jumped 33% year-on-year (YoY) to ₹257 crore.
• Revenue for Q4 rose 7% YoY, reaching ₹2,863 crore.
• The company operated at a high-capacity utilization rate of 105%, showcasing improved efficiency.

Despite a marginal decline in realization per ton due to geographical mix changes, the volume growth and operational control drove profitability.

Financial Snapshot

Revenue

• Q4FY25 Revenue: ₹2,863 crore (↑7% YoY)
• FY24-25 Full-Year Revenue: ₹9,312 crore (↓4% YoY)

EBITDA

• EBITDA per ton in Q4: ₹1,014
  • 5% higher YoY
  • 78% higher compared to the previous quarter

EBITDA Margins

• Q4 Cement Division EBITDA Margin: 20%
  • Improved from 18.6% in Q4FY24
• Full-Year Margin: 14%
  • Lower than 15.5% in FY23-24

Net Profits

• Q4FY25 Net Profit: ₹257 crore (↑33% YoY)
• FY24-25 Net Profit: ₹295 crore (↓30% YoY)

Company Details

Founded in 1919, Birla Corporation Limited is the flagship company of the MP Birla Group. Initially established as Birla Jute Manufacturing Company, the firm has since diversified into cement and jute goods.

In FY24-25:

• Cement sales volume in Q4 rose 8% YoY to 5.2 million tonnes
• Full-year cement sales reached 18.1 million tonnes, up from 17.6 million tonnes last year

Price realization for the year fell 7% YoY to ₹4,866 per ton due to industry-wide pricing pressures.

The company also achieved significant debt reduction:

• Net Debt: ₹2,244 crore (↓from ₹3,003 crore last year)
• Cost of Borrowing: 7.56% (↓35 bps YoY)

Summary

The remarkable Q4 earnings turnaround sent Birla Corporation shares soaring by 20% on May 12. While full-year performance remained subdued due to early pricing challenges, the strong final quarter and operational improvements signal renewed momentum for the company.

With rising demand, cost control, and increased capacity utilization, Birla Corporation shares have again caught the market's attention, making them one of the day's top gainers.