Birla Corporation (500335) Q3 24/25 earnings summary

Executive summary

• Mukutban plant has transitioned from a cash-negative unit to a key growth engine, significantly contributing to both volume and profitability, offsetting pricing pressures in core central markets.

• Standalone and consolidated unaudited financial results for the quarter and nine months ended 31st December 2024 were approved, showing a return to profitability after a loss in the previous quarter.

• The company has successfully maintained premium positioning in its core and new markets, with 58% of volumes in the premium segment this quarter.

• Board approved closure of the PVC Flooring Plant (Birla Vinoleum Division), which has been non-operational since 2014 and contributed 0% to turnover.

• Early redemption of ₹150 crore secured NCDs was approved, subject to debenture holders' consent.

Financial highlights

• Consolidated revenue from operations for Q3 FY25 was ₹2,256.65 crore, up from ₹1,952.56 crore in Q2 FY25 and ₹2,310.44 crore in Q3 FY24.

• Net profit for Q3 FY25 was ₹31.19 crore, compared to a net loss of ₹25.19 crore in Q2 FY25 and net profit of ₹109.14 crore in Q3 FY24.

• Net debt at the end of Q3 stood at INR 6,000 crores.

• EBITDA margin improved to 11.14% in Q3 FY25 from 9.18% in Q2 FY25.

• CapEx for the nine months was INR 300 crores, with a full-year target of INR 500 crores.

Outlook and guidance

• Volume growth guidance for H2 remains at 7%-8%, with confidence in achieving this target.

• H2 EBITDA is projected to increase by INR 150 per ton over H1, with no change in previous guidance.

• Closure of the non-operational PVC Flooring Plant is not expected to have any material adverse effect on operations.

• No changes to expansion timelines or long-term capacity targets; Kundanganj line expected by Q1 FY 2026.

• Revised Code of Practices for Fair Disclosure of Unpublished Price Sensitive Information adopted effective 4th February 2025.