Birla Corporation Ltd. (BCL) a MP Birla Group company, turned around in the fourth quarter, posting a ₹107.5 crore net profit against a ₹24.5 crore loss in the year-earlier period.
The company closed the year with a net profit of ₹115.1 crore against ₹214 crore in 2016-17. The firm is mainly engaged in cement and jute business.
The board declared a dividend of 65% for 2017-18.
Input costs rise
The demand in its markets had been moderate to good, the company said in a statement. Rajasthan was hit by the non-availability of sand and aggregates. Realisations improved in the fourth quarter although it was partly affected by a sharp rise in inputs costs, especially fuel.
“The first nine months were challenging due to restrictions in sand mining in U.P. and Bihar which are major markets for BCL.. this situation has now improved,” the firm said. These factors led to higher operational costs of ₹3,834.1 crore for the year against ₹3,755.8 crore. The firm’s integration with RCCPL had been completed, it said.
