Birla Corporation Ltd.
Cement and Cement Products
FV – Rs 10; 52wks H/L – 801/440; TTQ – 2522 Lacs; CMP – Rs 795 (As On January 20, 2020);
Market Cap – Rs 6120 Crs.
| Consolidated Financials and Valuations (Amt in Rs Crs unless specified) | |||||||||||
| Particulars | Equity Capital | Net Worth | Long Term Debt | Total Sales | PAT | BV (Rs.) | EPS (Rs.) | P/E | P/BV | Industry P/E | Promoter’s Holdings |
| 2019 | 77.01 | 4495 | 3623 | 6627 | 256 | 584 | 33.2 | 23.9 | 1.4 | 41.2 | 62.9 |
| 9M FY20 | 77.01 | 4660 | 3544 | 3547 | 229 | 605 | 29.7 | 26.8 | 1.3 | 41.2 | 62.9 |
- Birla Corporation Ltd is looking to scale up cement manufacturing capacity by over 60 % to 25 million tonnes (mt) from the current 15.5 mt in the next four to five years.
The expansion, which would be partly greenfield and partly brownfield, will entail a total investment of around Rs. 5000 Crs, to be funded through a mix of debt and equity. (https://www.thehindubusinessline.com/companies/birla-corp-plans-to-scale-up-cement-manufacturing-capacity/article28973361.ece)
- The Company paid a dividend of Rs. 7.50/- on a FV of Rs.10 (75%) amounting to Rs. 70 crs to the shareholders.
- During the year under review, your Company has registered an increase of 12.11% in cement sales on standalone basis and 10.12% on consolidated basis. In absolute terms, the sale of cement on standalone basis has increased to 89.10 lakh tons compared to 79.48 lakh tons in the previous year. RCCPL has sold 49.28 lakh tons of cement during the year.
Overview:
- Birla Corporation Ltd offers products ranging from cement to jute goods, polyvinyl chloride (PVC) floor covering, as well as auto trims and steel castings. Its segments include Cement, Jute and Others.
- Its Cement Division manufactures a range of cement, such as Ordinary Portland Cement (OPC), 43 & 53 grades, Portland Pozzolana Cement (PPC), Fly Ash-based PPC, Low Alkali Portland Cement, Portland Slag Cement, Low Heat Cement and Sulfate Resistant Cement.
- Its cement is marketed under the brand names of Birla Cement SAMRAT, Birla Cement KHAJURAHO, Birla Cement CHETAK and Birla Premium Cement.
- Its Jute Division manufactures over 120 tons of a range of jute products.
- Its Vinoleum Division has a production capacity of approximately 48.60 lakh square meters of Cushion Vinyl flooring, PVC Coated Wallpaper, Coated Fabric and Cellular Plastic Sheet.
Management:
- Harsh V. Lodha : Chairman
- Bachh Raj Nahar : Managing Director
- Aditya Saraogi : Chief Financial Officer
Major Non- Promoter Holdings:
| Company | No. of Shares Held | % of Shares Held |
| Reliance Capital Trustee Ltd | 5386405 | 6.99 |
| Life Insurance Corporation of India | 2708172 | 3.52 |
Segment Results:
| Particulars | 9M FY20 | 2019 |
| (Rs. Crs) | ||
| Segment Revenue: | ||
| Cement | 3342 | 6217 |
| Jute | 168 | 331 |
| Others | 4 | 7 |
| Segment Resutls (PBT): | ||
| Cement | 548 | 671 |
| Jute | 6 | 11 |
| Others | -1 | -3 |
Consolidated Financial Trends (Rs. Crs):
| Particulars | FY19 | FY18 | FY17 | FY16 |
| Equity Paid Up | 77 | 77 | 77 | 77 |
| Networth | 4495 | 4280 | 3305 | 2925 |
| Total Debt | 3648 | 3895 | 4070 | 932 |
| Net Sales | 6549 | 5939 | 4981 | 3762 |
| Other Income | 78 | 74 | 147 | 177 |
| PAT | 256 | 154 | 219 | 168 |
| Book Value (Rs) | 584 | 556 | 429 | 380 |
| EPS (Rs) | 33.2 | 20.0 | 28.5 | 21.8 |
Net profit of Rs.256 crore is result of higher volumes, improved realizations and operational efficiency. (66% from the previous year)
