Birla Corp Q3 Results Review - Strong Performance; Mukutban Plant Utilisations Improve: Motilal Oswal

Motilal Oswal Report

Birla Corporation Ltd.'s Q3 FY24 consolidated Ebitda was up 162% YoY to Rs 3.8 billion (versus estimated Rs 3.6 billion), and Ebitda/tonne was at Rs 901 (estimate Rs 851). Operating profit margin stood at 16.4% (up 9.2% YoY) for the quarter. Profit after tax was at Rs 1.1 billion versus estimated Rs 1 billion for Q3 FY24.

Birla Corporation has ramped up its operations at the Mukutban unit, and surpassed 0.20 million tonne of dispatches (~61% capacity utilisation) in January 2024. Birla Corporation marginally cut its volume growth guidance to ~13% from ~15% in FY24.

However, management maintained its Ebitda/tonne guidance at Rs 850 in FY24. State incentives for the Mukutban plant are likely to accrue in Q4 FY24, and these incentives will boost profitability.

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