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Birla Corp Q1 net profit down at Rs.118.28 crore

Kolkata, July 21 (IANS) The M.P. Birla Group flagship company Birla Corporation has clocked a profit after tax of Rs.118.28 crore in the first quarter of the 2010-11 financial year.

It is a declining profit of 23.86 percent, as the company had posted a profit of Rs.155.34 crore in the corresponding quarter of last fiscal (2009-10), a company statement said here Wednesday.

Chairman H.V. Lodha said during the quarter under review the profitability of the company was impacted by lower cement realization, more use of outsourced clinker, higher transportation charges, power and fuel costs and increase in cost of packing materials and also reduction in other income by Rs 22.20 crore.

The company board at its meeting Wednesday approved the capacity expansion at Chanderia from the ongoing 3,600 tonne per day (TPD) of clinker to 6,000 TPD. With this, the corresponding cement capacity would go up from 1.2 million tonne to about 2.7 million tonne.

Along with this, the capacity of the 35 megawatt (MW) power plant, sanctioned earlier, has been enhanced to 50 MW. The total cost of this incremental capacity will be Rs.273 crore, it said.

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