Birla Corp Q1 Review - Volume Growth Offset By Higher Operating Cost; Valuation Attractive: Axis Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Axis Securities Report.Birla Corporation Ltd. reported volume/revenue growth of 17%/26% YoY (above expectation) owing to better demand, new capacity being commercialised, and higher realisations during the quarter. The company reported a volume of 3.93 million tonne per annum, 1% above our expectation of 3.90 mtpa. The capacity utilisation during the quarter stood at 88% and the blended realisation came in at Rs 5,344/tonne, up 8% YoY. Birla Corp reported a blended Ebitda/tonne of Rs 660 (Rs 1028/tonne in Q1 FY22), down 36% YoY owing to the elevated costs. The cost/tonne on a YoY basis increased by 18% to Rs 4,948. The company reported an Ebitda margin of 11.8% (below expectations) against 19.7% YoY. The adjusted profit after tax declined by 61% (below expectation) owing to elevated costs and an exceptional item of Rs 12 crore. Furthermore, the start-up cost had a major impact on overall profitability, which was broadly in line with the management's internal projections. .Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Birla Corp Q1 Review - Volume Growth Offset By Higher Operating Cost; Valuation Attractive: Axis Securities

Birla Corp Q1 Review - Volume Growth Offset By Higher Operating Cost; Valuation Attractive: Axis Securities

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