Kolkata, May 08: Birla Corporation Limited, the flagship company of the M P Birla Group, has achieved the highest ever turnover of Rs 1,996.78 crore in the financial year 2007-08, an increase of 11 per cent over the previous year's turnover of Rs 1,794.51 crore.
The operating profit of the company for the year had increased by 18 per cent to Rs 613.67 crore against Rs 519.92 crore, a company statement here today said. The net profit and earning per share had gone up by 20.64 per cent at Rs 393.57 crore and Rs 51.11, respectively. The company's Board of Directors while approving the audited financial result for 2007-08, had declared a dividend of 40 per cent aggregating to Rs 36.04 crore (including divident tax).
For the quarter ended March 31, 2008, the company registered a turnover of Rs 563.14 crore against Rs 512.21 crore in the corresponding quarter the previous year.
The next profit, however, was lower at Rs 86.56 crore against Rs 101.19 crore, mainly on account of lower realisation coupled with increase in the inut cost in the Cement Division and suspension of operation in the Durgapur Unit.
Mr Rajendra S Lodha, Chairman, elaborating on the results, attributed the improved performance to better realisation and operating efficiencies in the Cement Division.
Performance of the Jute Division of the company had also improved during the year.
Mr Lodha stated that the expansion projects at Satna and Chanderia, which would effectively enhance the cement capacity of the company to 7.5 million ton, were likely to be completed in phases by June 2009.
As regards performance of the company in the current year, Mr Lodha stated that although the demand for cement by various sectors such as housing, consruction and infrastructure would continue to be buoyant, the industry faced challenges to meet the steep cost escalation, particularly in the cost of coal, which put pressure on margins, However, the performance of the Jute Division is expected to further improve during the current financial year.