Birla Corporation shares surge 20%, hit upper circuit following Q4 results

The cement maker proposed a Rs 10 per share dividend for FY2024-25.

Birla Corporation's share price surged 20 percent on Monday, May 12, as investors cheered the earnings show for the quarter ended March.

The firm reported a 32.8 percent year-on-year rise in net profit for Q4, with earnings climbing to Rs 256.6 crore for the quarter ended March 31, 2025, up from Rs 193.3 crore a year ago. It also proposed a dividend of Rs 10 per share for FY2024-25, to be distributed within 30 days of shareholder approval at the upcoming AGM.

Cement sales volume rose 8 percent YoY, but full-year revenue declined 4 percent to Rs 9,312 crore, with net profit down 30 percent YoY to Rs 295 crore.

As of 1.40 p.m the shares were trading at Rs 1,268.80 apiece.

The cement segment firm revealed plans for capacity expansion, which consist of a 3.7 million tonne per annum (MTPA) brownfield clinker expansion at Maihar, Madhya Pradesh, set to be commissioned by the third quarter FY28, and three Greenfield grinding units with a combined capacity of 6.2 MTPA in central India (3.4 MTPA) and Bihar (2.8 MTPA) to be commissioned in phased manner during FY28-29. The total estimated capital expenditure is Rs 4,340 crore.

Birla’s results were a beat on expectations as cement realisations rose by 7 percent on a sequential basis. Out of the 21 analysts covering Birla Corporation, 18 have a "Buy" rating on the stock, while three have a "Hold" rating.

Its EBITDA per tonne was the highest in the last 18 quarters. The cement volumes for the quarter also increased to 5.25 million tonnes, from 4.5 million tonnes in the previous quarter and 4.85 million tonnes during the same quarter last year.

The company has seen a significant contraction in its net debt as opposed to the Q3, net debt at came down from Rs 3,003 crore to Rs 2,244 crore for the quarter ended in March. The reduction in debt has resulted in a lower cost of borrowing for Birla Corp.

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