Birla Corporation, the flagship company of the M.P. Birla Group, has earned profit after tax of Rs.68.97 crore in the second quarter of 2010-11, against Rs.152.05 crore in the previous corresponding quarter. The turnover for the quarter was Rs.550.34 crore (Rs.556.31 crore).
The board declared an interim dividend of Rs.2.50 per share for 2010-11 while approving the second quarter results on Tuesday.
Profitability of the company declined due to lower clinker production on account of shutdown of plants for capacity expansion, regular maintenance activities, lower cement realisation, increased use of outsourced clinker owing to non-availability of clinker from its own plant, higher consumption of stores and spares during stoppages for maintenance, increased cost of packing materials and increase in freight cost as a result of rise in diesel prices.
However, despite expansion and modernisation activities and substantial increase in the cost of inputs, the performance of the company is satisfactory in the present scenario prevailing in the cement industry.