Scripscan:Birla Corporation Ltd
cmp:250
Code:500335
Story:Birla Corporation Limited, together with its subsidiaries, primarily engages in the manufacture and sale of cement in India. The company’s Cement division offers various cements, such as ordinary portland cement, 43 and 53 grades, portland pozzolana cement, fly ash – based PPC, low alkali portland cement, portland slag cement, low heat cement, and sulphate resistant cement under the Birla Cement SAMRAT, Birla Cement KHAJURAHO, Birla Cement CHETAK, Birla Cement, and Birla Premium Cement names. Its Jute division provides a range of products, including jute yarn, floor and wall covering, lino hessian, decorative fabrics, nursery cloth, scrim, jute carpets, non-woven jute felt, hydrocarbon-free bags/cloth, D.W. canvas, carpet backing cloth, hessian cloth/bags, and sacking bags/cloth. The company’s Vinoleum division produces polyvinyl chloride sheets; and various flooring products, such as cushion vinyl flooring under the Birla Vinoleum name, commercial flooring under the Super Corporate name, and super corporate antistat. This division markets its products for various applications in homes, hotels, hospitals, offices, nursing homes, airports, banks, computer rooms, railways, restaurants, and shopping complexes. Its Auto Trim division produces automotive interiors, including door trims, parcel shelf trims, and pillar trims. Birla Corporation also involves in power generation, and iron and steel castings operations. The company was formerly known as Birla Jute Manufacturing Company Limited and changed its name to Birla Corporation Limited in 1998.This is the flagship company of the MP Birla group and on a YoY, for Q2FY12, it reported a 62% drop in net profit at Rs.26 crore despite a 5% rise in turnover. Cash profit during Q2 was down by 53% at Rs.47 crore due to lower realisation following disruptions at its Chanderia (Rajasthan) unit. It also suffered forex losses of nearly Rs 14 crore during the quarter.Increase in coal prices also affected the profits. Power and fuel costs on a YoY rose 50%. Total operating costs were up 19%. Overall economic slowdown has impacted the performance of the industry during the quarter. The hike in lending rates by banks has depressed the growth in cement demand from the real estate sector with big projects being delayed in major metropolitan cities. Q3 is also expected to remain under pressure.
Important Disclaimer&Privacy policy
This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: arunsharemarket@gmail.com
Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.
