views by- Manish Chowdhury, Head of Research, Stoxbox
– The company earned a revenue of Rs. 33,563 crores for Q2FY25 (up 11% YoY / down 1% QoQ), driven by strong performance from its diversified business portfolio.
– The company’s consolidated EBITDA stood at Rs. 4,042 crores for Q1FY25 (down 1% YoY / down 10.3% QoQ). EBITDA margin was down to 17.9% in Q2FY25 from 20% in the same quarter for the previous year due to narrow profit margins in the cement business and the upfront investments required to establish the consumer-facing paints business.
– The net profit stood at Rs. 1,100 crores (down 45.6% YoY / down 51.5% QoQ) in Q2FY25. The PAT margin was 3.0% versus 6.7% in the previous quarter.
– The CSF business achieved its highest-ever quarterly sales volume at 219 KT, up 4% YoY. The CFY business recorded a growth of 6% YoY, driven by festive demand. However, realizations remain under pressure due to low-priced imports from Chinese producers.
– The Chemicals business revenue stood at Rs. 2,054 crores, up 3% YoY and EBITDA up by 16% YoY due to the increased profits in chlorine derivatives and specialty chemicals. Specialty Chemicals (epoxy polymers and curing agents) revenue mix stood at 26% in Q2FY24.
– The International average Caustic Soda (CFR-SEA) spot prices stood at $471/ton in Q2FY25, improving by 13%. The sales volume was down by 4% YoY due to reduced production at Vilayat, which resulted from a maintenance shutdown of the captive power plant.
– The Building Materials business reported revenue of Rs. 16,683 crores, up 3.3% YoY. During the quarter, EBITDA was impacted by lower realisation in the cement business and initial investments in building a consumer-facing ‘Birla Opus’ brand in the Indian decorative paints market.
– The budgeted standalone capex for FY25 is Rs. 4,691 crores, of which Rs. 2,997 crores are towards new growth businesses. The company has approved an investment of ₹287 Cr. for additional pulp capacity at Harihar and ₹20 Cr. for the Textiles business
– The paints business under the brand name ‘Birla Opus’ is ramping production across product categories at three already commissioned plants in Ludhiana, Panipat and Cheyyar. Trial runs have also started at the Chamarajanagar and Mahad plant in Q2FY25.
– The Financial Services business (Aditya Birla Capital) revenue stood at Rs. 10,252 crores, up 33%, and total AUM (AMC, life insurance and health insurance) stood at Rs. 5,01,152 crores, up 24% YoY. Its D2C platform saw a strong response with more than 2.5 million customer acquisitions.