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Birla Corporation Ltd

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Birla Corporation Ltd

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)

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