MP Birla Group firm Birla Corporation has reported a decline of 85.06 per cent in standalone net profit to Rs 2.09 crore for the third quarter ended December 31, on account of decline in cement sales in key markets due to a liquidity crunch. The company had posted a net profit of Rs 13.99 crore in the October-December period a year ago, Birla Corporation said in a BSE filing.
Birla Corporation’s total income from operations during the quarter under review was down 8.07 per cent to Rs 848.93 crore, as against Rs 923.47 crore in the corresponding quarter of the last fiscal. The company's cement production was down 10.79 per cent to 17.51 lakh tonnes in the quarter compared with 19.63 lakh tonnes in the year-ago period.
“The drop in volumes was contributed primarily by the affect of demonetisation in the key markets of north and central India where the company’s operations are concentrated," the company said. Total expenses were down 8.33 per cent to Rs 827.36 crore during the quarter against Rs 902.64 crore in the year-ago period. Revenue from the cement segment declined 10.22 per cent to Rs 754.45 crore during the quarter as against Rs 840.35 crore of the corresponding period last year. However, the jute segment was up 12.40 per cent to Rs 75.12 crore as against Rs 66.83 crore.