Birla Corp Q1 net down 24 percent

July 28th, 2012 - 10:32 pm ICT by IANS  

Kolkata, July 28 (IANS) Birla Corporation, the flagship company of the M.P. Birla group, Saturday announced a 24.26 percent slide in its net profit to Rs.84.74 crore for the quarter ended June 30, 2012, from Rs.111.88 crore in the same period last year.

Net sales in the first quarter, however, stood at Rs.658.02 crore as against Rs.556.97 crore posted in the same period a year ago.

Birla Corporation chairman Harsh V. Lodha, in a statement, said profitability of the company continued to be affected due to the closure of limestone mining operations at its Chanderia units on account of the order of Rajasthan High Court.

Rail freight hike, with effect from March 6 this year, on incoming raw materials and outgoing cement dispatches and soaring power and fuel costs impacted profit. Suspension of work at Birla Jute Mills also had an adverse effect on the company’s bottomline.

The company is undertaking several capacity expansion projects in its cement division which could increase the capacity to 9.3 million tonnes per annum by the end of the current financial year.

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