Cement & Cement Products
Birla Corporation Limited manufactures and sells cement and clinker in India and internationally. The company operates through three segments: Cement, Jute, and Others. It offers ordinary Portland, Portland Pozzolana, and Portland slag cement under the MP Birla Cement Perfect Plus, MP Birla Cement Samrat Advanced, MP Birla Cement Ultimate Ultra, MP Birla Cement Unique, MP Birla Cement Samrat, MP Birla Cement Ultimate, MP Birla Cement Chetak, MP Birla Cement PSC, MP Birla Cement Multicem, and MP Birla Cement Concrecem brands used in bridges, dams, railway sleepers, reservoirs, industrial buildings, marine structures, cooling towers, metro lines, and airport runways. In addition, the company manufactures various jute products, such as jute yarn, floor and wall coverings, decorative fabrics, scrims, jute carpets, non-woven jute felts, hydrocarbon-free bags/cloths, carpet backing cloths, which are used in mats, yarns, ropes, bags, carpets, and panama. Further, it offers iron and steel castings. The company exports its products. The company was formerly known as Birla Jute Manufacturing Company Limited and changed its name to Birla Corporation Limited in 1998. The company was incorporated in 1919 and is based in Kolkata, India.
Summary of Birla Corp's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Feb 25
Management Outlook & Major Points:
Birla Corporation's management remains optimistic, driven by robust performance in key regions and strategic initiatives.
Mukutban Plant Success: Transitioned from a loss-making unit to a growth engine, achieving ~67% utilization. It now contributes significantly to volumes and profitability, offsetting competitive pressures in Central India.
Volume & EBITDA Guidance: Maintains FY25 volume growth guidance of 7-8% for H2. Expects H2 EBITDA/tonne to rise by ~INR150, driven by price hikes, cost controls, and improved mix.
Regional Performance:
Cost Optimization: Focus on fuel efficiency (INR1.5/MMkcal savings), captive coal (15% usage; targeting 30-32% post-Bikram block commissioning in FY27), and green power (targeting 35% share).
Expansions: Kundanganj expansion (1.4 MTPA) on track for Q1 FY26. Maintains long-term target of 25 MTPA by FY27.
Incentives: Accrued INR60 crore incentives in 9M FY25; expects ~INR100 crore for FY25 (primarily from Mukutban).
Demand Outlook: Rural recovery post-monsoon and steady government spending to drive volume growth. Prices firmed up post-Q3, with further improvements expected.
Debt & Capex: Net debt stable at ~INR3,000 crore. FY25 capex trimmed to INR500 crore (INR300 crore spent in 9M).
Key Risks: Regional competition, fuel price volatility, and delayed monsoon impacts. Focus remains on premiumization, cost leadership, and balanced regional growth.
Last updated: Feb 25
Question 1:
Shravan Shah (Dolat Capital): What are the lead distance, fuel cost per million kcal, incentives, net debt, and capex incurred in 9 months and projected for FY25?
Answer:
Lead distance: 360 km. Fuel cost: Rs.1.50/kcal. Q3 incentive: Rs.40 crore. Net debt: ~Rs.3,000 crore. FY25 capex target: Rs.500 crore (Rs.300 crore spent in 9 months).
Question 2:
Shravan Shah (Dolat Capital): Given flat 9M volume growth, how will Birla achieve 7-8% H2 guidance, and what is the capacity expansion roadmap for FY26/27?
Answer:
Management remains confident in 7-8% H2 volume growth. Kundanganj expansion (1.4MT) is on track for Q1 FY26. Long-term plans (25MT by FY27) remain unchanged.
Question 3:
Mangesh Bhadang (Centrum Broking): What is the demand outlook for the Central region, and how will Kumbh Mela impact it?
Answer:
Kumbh Mela's impact is temporary. Central region demand is expected to recover post-monsoon with improved rural spending and state govt. initiatives.
Question 4:
Mangesh Bhadang (Centrum Broking): What is the current realization vs. Q3 average, and when will new capex announcements occur?
Answer:
No specific pricing guidance. Realizations are influenced by regional mix (Maharashtra's lower pricing). No immediate capex updates beyond Kundanganj.
Question 5:
Saket Kapoor (Kapoor & Co.): Why did depreciation decrease, and how did non-trade segment pressure affect pricing?
Answer:
Depreciation variance is minimal, with no policy changes. Non-trade price pressures (OPC focus) spilled into trade, but Birla prioritized premium trade segments to protect margins.
Question 6:
Sanchita Sood (RoboCapital): What is the EBITDA/tonne guidance for FY26/27?
Answer:
Management declined to speculate on long-term EBITDA, reiterating FY25 guidance of Rs.150/ton H2 improvement.
Question 7:
Pathanjali Srinivasan (Sundaram MF): How is consolidated utilization 91% if Mukutban runs at 70%? What is the incentive accrual?
Answer:
Weighted average utilization includes higher-utilization plants. FY25 incentive accrual: ~Rs.100 crore (Rs.60 crore in 9M), mostly from Mukutban.
Question 8:
Prateek Kumar (Jefferies): What is the incentive accrual for 9M and FY25? How are new businesses scaling?
Answer:
9M incentive: Rs.60 crore; FY25 target: Rs.100 crore. Construction Chemicals/RMC are nascent, focused on brand-linked markets and cautious scaling.
Question 9:
Girija Ray (YES Securities): Why did freight costs rise, and what markets does Mukutban serve?
Answer:
Freight costs marginally increased due to Mukutban's Vidarbha focus. Telangana is opportunistic; primary markets: Vidarbha, Khandesh, Mumbai.
Question 10:
Uttam Srimal (Axis Securities): What drove jute revenue growth, and what is the FY26 capex outlook?
Answer:
Jute growth tied to agri-bag demand. FY26 capex details deferred; Bihar expansion (5MT by 2027) is progressing with land acquisition.
Question 11:
Shravan Shah (Dolat Capital): What is captive coal's contribution, and when will Bikram/Marki-Barka optimize?
Answer:
Captive coal: 15% in Q3. Bikram (30-32% by FY27) and Marki-Barka (55-60% post-FY27) will progressively reduce dependency.
Question 12:
Rajesh Ravi (HDFC Sec): Why was FY25 capex reduced to Rs.500 crore, and what is Bihar's status?
Answer:
Capex optimized for cash flow; deferred non-critical spends. Bihar expansion (part of 5MT plan) has acquired land and remains on track.
Question 13:
Harshil (AMSEC): What is Mukutban's profitability vs. company average?
Answer:
Unit-specific profitability not disclosed.
Valuation | |
---|---|
Market Cap | 8.12 kCr |
Price/Earnings (Trailing) | 35.01 |
Price/Sales (Trailing) | 0.89 |
EV/EBITDA | 6.56 |
Price/Free Cashflow | 7.66 |
MarketCap/EBT | 25.16 |
Fundamentals | |
---|---|
Revenue (TTM) | 9.13 kCr |
Rev. Growth (Yr) | -2.42% |
Rev. Growth (Qtr) | 15.35% |
Earnings (TTM) | 231.96 Cr |
Earnings Growth (Yr) | -71.42% |
Earnings Growth (Qtr) | 223.82% |
Profitability | |
---|---|
Operating Margin | 3.46% |
EBT Margin | 3.53% |
Return on Equity | 3.34% |
Return on Assets | 1.57% |
Free Cashflow Yield | 13.05% |
Investor Care | |
---|---|
Dividend Yield | 1.22% |
Dividend/Share (TTM) | 12.5 |
Shares Dilution (1Y) | 0.00% |
Diluted EPS (TTM) | 30.13 |
Financial Health | |
---|---|
Current Ratio | 1.1 |
Debt/Equity | 0.55 |
Debt/Cashflow | 0.42 |
Analysis of Birla Corp's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2024
Description | Share | Value |
---|---|---|
Cement | 95.5% | 2.2 kCr |
Jute | 4.5% | 101.3 Cr |
Total | 2.3 kCr |
Size: Market Cap wise it is among the top 20% companies of india.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Smart Money: Smart money has been increasing their position in the stock.
Balance Sheet: Strong Balance Sheet.
Technicals: SharesGuru indicator is Bearish.
Momentum: Stock is suffering a negative price momentum. Stock is down -4.8% in last 30 days.
Comprehensive comparison against sector averages
BIRLACORPN metrics compared to Cement
Category | BIRLACORPN | Cement |
---|---|---|
PE | 34.74 | 39.16 |
PS | 0.88 | 2.51 |
Growth | -4.7 % | 2.8 % |
BIRLACORPN vs Cement (2021 - 2025)
Understand Birla Corp ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Shareholder Name | Holding % |
---|---|
Hindustan Medical Institution | 9.3% |
Vindhya Telelinks Ltd. | 8.29% |
August Agents Ltd. | 7.81% |
Insilco Agents Ltd. | 7.8% |
Laneseda Agents Ltd. | 7.78% |
The Punjab Produce and Trading Company Private Ltd. | 5.87% |
Punjab Produce Holdings Ltd. | 4.76% |
Eastern India Educational Institution | 4.36% |
NIPPON LIFE INDIA TRUSTEE LTD (Shares held in their various Schemes) | 3.7% |
HDFC MUTUAL FUND (Shares held in their various schemes) | 3.51% |
ICICI PRUDENTIAL MUTUAL FUND (Shares held in their various Schemes) | 3.12% |
Gwalior Webbing Co. Pvt. Ltd. | 2.31% |
Mazbat Tea Estate Ltd. | 1.91% |
HSBC MUTUAL FUND (Shares held in their various Schemes) | 1.71% |
Baroda Agents & Trading Co. Pvt. Ltd. | 1.19% |
Universal Cables Ltd. | 0.39% |
Hindustan Gum & Chemicals Ltd. | 0.35% |
Belle Vue Clinic | 0.23% |
South Point Foundation | 0.18% |
Shreyas Medical Society | 0.15% |
Distribution across major stakeholders
Distribution across major institutional holders
Detailed comparison of Birla Corp against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
---|---|---|---|---|---|---|---|---|---|
ULTRACEMCO | UltraTech CementCement & Cement Products | 3.44 LCr | 72.08 kCr | +4.17% | +20.40% | 53.11 | 4.6 | +4.43% | -7.64% |
AMBUJACEM | Ambuja CementsCement & Cement Products | 1.32 LCr | 36.36 kCr | +1.87% | -9.93% | 25.51 | 3.5 | +9.83% | +9.01% |
SHREECEM | Shree CementsCement & Cement Products | 1.07 LCr | 19.76 kCr | -0.61% | +16.44% | 87.13 | 5.4 | -4.90% | -45.47% |
DALBHARAT | DALMIA BHARATCement & Cement Products | 36.97 kCr | 14.48 kCr | +10.34% | +11.59% | 63.74 | 2.55 | -0.39% | -49.21% |