Birla Corporation Ltd. (BCL) reported a strong beat in Q2FY21 led by better than expected volumes and realisation.

We expect 10.2%/ 12.6%/ 16.9% revenue/ EBITDA/ APAT CAGR over FY20-23E led by -4.1%/ 17.7%/ 16.0% volume growth and 1.5%/ 0.5%/ 1.0% cement realization growth in FY21E/ FY22E/ FY23E. We increase our revenue/ EBITDA estimates by 9.0%/ 15.0% for FY21E considering H1FY21 results. Accordingly, we increase our APAT estimates by 39.4% for FY21E. We broadly maintain FY22E and introduce FY23E. We factor 3.9mtpa Mukutban (Maharashtra) expansion to commence by end of Sept'21 (in line with management...

Birla Corporation (BCORP) has reported extremely good set of numbers for 2QFY21 as its revenue and EBITDA were 11.7% and 41.7% ahead of our estimates. The beat was driven by lower operating costs and better volume and realisations. Despite 2Q being a monsoon quarter, the company reported its best EBITDA/mt in over a decade and best ever absolute EBITDA in this quarter. Along with better profitability, the company has managed to cut down its debt by Rs1.1bn over the past 12 months despite spending Rs8bn in capex for its Mukutban (Maharashtra) plant. Overall, we believe that better regional presence, focus on trade segment, higher blending ratios, focus on cost rationalization and modernization will result in sustained improvement in BCORP's earnings....

A single bench of the Honble High Court at Calcutta vide its order dated 18th September, 2020 in a probate proceeding to which the Company is not a party has restrained Mr. Harsh V. Lodha, Non-Executive Director and Chairman of the Company from holding any office in the Company.

Birla Corporation (BCL) is one of the leading cement producers with 15.5 million tonne per annum (mtpa) capacity, spread mainly across central, north and eastern India.

Weak pricing results in lower than expected margins Birla Corporation (BCORP) has reported relatively weak set of numbers for 1QFY21. Revenue at Rs12.22bn declined by 35.1% YoY due to 33.3% YoY decline in volume. Realization/mt declined by 1.1% YoY (+1.4% QoQ) to Rs4,956, resulting in subdued EBITDA/mt performance. Despite the strong presence in Central and Eastern markets, which saw significantly better growth compared to the industry, BCORP's volume and pricing growth was lower, which was disappointing. Delayed start to the Rae Bareli grinding unit resulted in weak volume whereas lower sales in Bihar (where pricing was better) and weak pricing in MP resulted in lower...

Disruption due to nationwide lockdown and significant disturbances in key markets and manufacturing centres led to contraction of Revenue/Ebitda/APAT of the company. Company reported de-growth in Revenue/Ebitda/APAT by 35%/39% and 53% on YoY basis.

increase in NSR sequentially owing to pricing tailwinds in operatingmarketsandhighershareoftrademix(+1015% shift in mix towards trade segment). However, operating marketsofBCORPwitnessedstablepricingwhiletrademix hasbeenhighhistoricallyforthecompany(8085%ofsales) leavinglessscopeforincrementalimprovement. Cost optimization measures and stable pricing translated into EBITDA/te of Rs 981 (5% y/y). Absolute EBITDA...

We are initiating coverage on Birla Corporation Limited (BCL) with a BUY recommendation and a Target Price of Rs 854, which implies 50% upside from the current levels

Birla Corp's debt had risen with the acquisition of RCCPL assets. The company has also undertaken greenfield capacity expansion at an estimated cost of ~| 2500 crore in Maharashtra. This project would be funded by debt to the extent of 70-75%, leading to further addition in debt. The decision to keep the Kundanganj brownfield expansion on hold would help keep leverage from increasing further. We expect debt to peak in FY21 (refer...

Birla Corporation (BCORP) has reported good set of numbers for 4QFY20. Revenue at Rs16.90bn declined by 9.8% YoY due to 14.3% YoY decline in volume. Realization was better with 5.7% YoY uptick, resulting in better EBITDA/mt performance. Operating cost was flat YoY as decline in raw material cost was offset by an increase in other expenses. EBITDA/mt, as a result, came in at Rs1,044, which was only the second instance after June 2019 that the company has reported EBITDA/mt above Rs1,000. EBITDA at Rs3.45bn was up 11.3% YoY whereas PAT at Rs1.95bn was up 51.9% YoY on account of lower tax rate. BCORP's subsidiary Reliance cement (RCCPL) has migrated to the new tax regime resulting in lower tax...

(est. of 3.44 MT) which was down by 13% y/y due to lockdownmeasures.However,utilizationlevelforBCORP remainedsublimeat93%forQ4FY20.Furtherallplants of BCORP except Raebareli and Durgapur have been...

29 January 2020 EBITDA/ton was up 33% YoY (-12% QoQ) in 3QFY20, led by higher realizations (+4% YoY) and cost savings (+2% YoY). While BCORP witnessed some decline in trade sales due to seasonality, it remains focused on higher trade/premium cement sales and cost efficiencies over the longer term. We maintain our FY20/21 estimates and rating. Cement realizations increased 4% YoY (-1.4% QoQ) to INR4,743/t. BCORP witnessed a sharp decline in prices in the eastern region. Total cost/ton was up 1% QoQ (-2% YoY) at INR4,141 (3% above our estimate of INR4,040). Note that consumption of higher-cost clinker inventory offset the benefit of lower power & fuel and freight costs. EBITDA/ton declined 12% QoQ (+33% YoY) to INR859 (9% below our estimate of INR946). EBITDA stood at INR2.9b (+42% YoY, -6% QoQ) v/s our estimate of INR3.2b. PAT stood at INR815m (3x of FY19), 10% below our estimate of INR903m.

Birla Corp has a strong presence on the retail front owing to its distribution network and focus on trade sales, which have a share in excess of 80% of total volume sales. Further, the company has been pushing more of premium cement via its trade channels and higher ad spends. This has led premium products to form 35-50% of trade sales. In turn, this has enabled the company to improve its realisations, which have growm at 6% CAGR over FY16-19, putting the company in the ranks of industry giants, UltraTech and ACC. This, combined with 19% volume CAGR has contributed to...

1HFY20 performance: Sales/EBITDA/PAT increased 13%/ 61%/2.3x YoY. Operating cash flows post working capital and taxes declined 5% YoY to INR4.1b, led by an increase in working capital due to higher receivables (+2...

volumes increased 13.2% YoY to 3.85mt. Cement realizations rose 1.3% YoY to INR4,625/t. Consequently, EBITDA/t increased 6% YoY to INR804. 5 May 2019 margin improving 0.9ppYoY to 16.5%. PAT came in at INR1.28b (-2% YoY, our estimate of INR1.05b). For FY19, volumes grew 10% to 13.

Birla Corporation Limited (BCorp) reported substantial rise in its Q4FY18 financial results on back of robust realization and volume growth.

Birla Corporation Limited (BCorp) reported a mixed bags of results in its Q3FY18 financial results. Net revenue and cement sales volume exceeded our estimates, however EBITDA and net profit...

Total cost/t for consolidated operations increased 5% YoY (3% QoQ) to INR4,127 due to higher shutdown and maintenance expenses. Power and fuel cost/t increased 21% YoY due to increase in petcoke prices. Raw material cost increased 19% QoQ due to increase in slag prices for eastern operations. Consolidated EBITDA/t was INR458 (-6% YoY, -31% QoQ), and EBITDA was INR1.38b (+15% YoY, -22% QoQ; our estimate: INR1.8b) . Acquired assets reported EBITDA/t of INR913 (-15% QoQ) due to lower realizations while standalone operations reported EBITDA/t of INR199 (-40%YoY, -55%QoQ). Margins were at 10% (-1.23pp YoY, -4.33pp QoQ). Interest expense fell 17% YoY (and 9% QoQ) to INR958m due to refinancing of debt. Reported loss was INR218m (our estimate: profit INR44m).

Birla Corporation Ltd. (BCorp) reported a mixed bag of results in its Q2FY18. Consolidated revenue was higher than our estimate while EBITDA and net profit were below from our estimates.