16 May 2018
Birla Corporation Limited, the flagship company of the M P Birla Group, announced today its
financial results for the year ended 31 March 2018, as well as the consolidated results, including
those of Reliance Cement Company Private Limited (RCCPL), wholly»owned material subsidiary
of the Company.
The Company’s Board of Directors approved the audited financial results for 2017~18 today and
proposed a dividend of Rs 6.50 per share (previous year Rs 6.50). The total outgo on account of
dividend, including taxes, works out to Rs 60.34 crores.
Key Financial 8: Performance Highlights [Consolidated]
‘:~ Cement Production
– For Q4 FY2018 stood at 34.4 lakh tons, compared to 33.1lakh tons in Q4 FY2017, reflecting
an increase of 4%.
o For 12M FY2018 stood at 125.3 lakh tons, compared to 101.3 lakh tons in 12M FY2017,
reflecting an increase of 24%.
‘3 Cement Sales
0 For Q4 FY2018 stood at 34.1 lakh tons, compared to 32.8 lakh tons in Q4 FY2017, reflecting
an increase of4%.
. For 12M FY2018 stood at 123.9 lakh tons, compared to 100.8 lakh tons in 12M FY2017,
reflecting an increase of 23%.
0:. Net Sales/Income from Operations
.
During the quarter were Rs 1,650.6 crores, compared to Rs. 1,420.1 cranes in Q4 FY2017,
showing a growth of 16%.
. For 12M FY2018 were Rs 5,734.2 crores, compared to Rs. 4,347.7 crores in 12M FY2017,
resulting in a growth of 32%.
~2~ Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
– For the quarter were Rs 284.1 crores, compared to Rs 269.7 in Q4 FY2017 resulting in
growth of5%.
– For 12M FY2018 were Rs 869.6 crores, compared to Rs 762.6 crores in 12M FY2017,
resulting in a growth of 14%.
There was marked improvement in realizations during the quarter under review, which was partly
off-set by sharp increase in input costs, especially fuel.
Demand in the markets, which are part of the marketing footprint of the Company, have been
moderate to good, except in the North, in particular Rajasthan, which was affected due to
availability of sand and aggregates. There has been a significant pick-up in rural housing with the
Pradhan Manm’ Awas Yojana and infrastructural activities.
The first nine months of the year had been challenging for the Company owing to restriction on
and mining in Uttar Pradesh and Bihar, major markets of the Company, which had a telling
laid on cement demand. With the availability of sand easing, ’
the demand in these markets has
ned to normal, helping recovery in volumes and realisation.
The Company continues to evolve strategies and optimize operations for improvement in
efficiencies across the functions with special emphasis on:
Increasing blended cement ratio
Enhancing proportion of sales in the Trade segment
Increasing ratio of cement sales in premium category
Optimising use of additives in the cement
Increasing output at captive coal mines of RCCPL
Reducing purchase of power from the grid in RCCPL by installing WHRS term Use of alternate fuels
PP?!”
The quality of cement being produced by the manufacturing units continues to be the best in class.
Operational parameters of the new plants are amongst the best in the industry.
Integration of operations of RCCPL with the Company has been completed and operations and
management of operations are now being run seamlessly. The plants of RCCPL have been ramped
up considerably. The kiln output of the integrated cement plant of RCCPL at Maihar is now at
optimal levels. Synergy benefits that were expected to flow in on acquisition are also being realized.
Brand portfolios of both the Companies, which complement each other, have been combined and
brought together under “M P Birla Cement”. RCCPL has since received VAT incentive from the UP
Government for earlier periods which will improve the liquidity position of RCCPL significantly.
These measures are yielding results which are reflected in higher margins and improvement in
EBIDTA in Q4 2018.
M P Birla Cement has recently introduced two super premium brands, Perfect Plus and Ultimate
Ultra. Since the acquisition of Reliance Cement, the contribution of premium brands to the
consolidated sales of the Company has increased substantially.
M P Birla Cement Perfect Plus has been introduced in all the major markets of the Company.
The product has been formulated for application in vital parts of the oonstmction—foundation,
pillar and roof. It has been launched with a powerful new audio-visual film that brings out the
special properties of the cement in a very charming manner.
M P Bil-la Cement Ultimate Ultra is produced at the Durgapur unit specially formulated for
the requirements ofthe eastern markets. Ultimate Ultra is a high-performance cement, providing
the best of strength St finish for the discerning home-builder. It has a high refractive index as its
fine grains yield high early strength and additional compressive strength. It has excellent
workability due to the optimal mix of raw materials and particle size distribution.
Ban on pet coke in Rajasthan affected profitability of the units of the Company at Chanderia. The
ban, however, was lifted by the end of January 2018. The unit’s functioning was also severely
impacted by the ban on sand mining in the State. Coupled with these, the continuing suspension of normal mining operations (with blasting) necessitated sourcing part of the limestone
requirement from third parties at significantly higher prices.
Freight costs went up, owing to higher diesel prices and high demand for transport vehicles on
account of stronger movement of agricultural products. Also, prices of pet coke increased
significantly.
Non-availability of railway rakes constrained the movement of both raw materials as well as
finished products. Rakes had been diverted to meet the requirement of power plants for mnying coal. This disrupted not only supply of coal to the clinker plants of the Company but also
transportation of clinker to the grinding units and cement to rail-fed destinations.
Outlook
The expected rise in rural income and higher rural credit, coupled with increased allocation for
rural, agricultural and allied sectors, are likely to boost the demand for cement. The higher budget
outlay for housing, infrastructure and rural development will be the key drivers for the cement
‘
~
1 ustry in the coming months. While the industry is facing challenges ofrising input costs, we are
‘I’r ‘
istic that our relentless drive for reducing costs and increasing efficiencies in all areas of
-.. l ions will continue to vield results in terms of better profitabilitv.
Jute Division
The Jute Division has reported EBIDTA of Rs 2,842.7 lakh (Rs 3,088.5 lakh). Production during
the year was 37,208 MT (37,367 MT). Exports increased by about 12% to Rs 4,8811akh (Rs 4,365
lakh).
M P Bil-la Hospital & Research Centre, Chittnrgarh
The M P Birla Hospital 8: Research Centre at Chittorgarh has recently started operations and is the
latest initiative of the M P Birla Group to serve society in Chitmrgarh region. This is the first fullservice
hospital in Chittorgarh, where the Company has two cement plants. The Hospital has in—
house modern medical 81 pathological laboratories and modular OT, among other facilities. It also
offers advanced critical care facilities as well as neonatal/infant mire. The Company has provided
financial as well as administrative support to the initiative
