Birla Corporation Surges 43% In Two Days As Company Doubles Profit In March Quarter

Cement maker Birla Corporation’s stock continued to surge on Wednesday for the second straight session after the company reported impressive profits in its March quarter results. At 2:05 pm on Wednesday, the shares of Birla Corporation were trading at Rs 546.75 apiece, up 12.29 percent. The stock had hit an intra-day high of Rs 580 in Wednesday’s trade, rising nearly 43 percent in the last two sessions. The company registered a net profit of Rs 195 crore, up 51.9 percent on a year-on-year (YoY) basis, despite dispatches grounding to a halt in later part of March and despite the loss of volumesdue to the situation arising out of the COVID-19 pandemic. Total income for the quarter declined 9.4 per cent YoY to Rs 1,718 crore as dispatches were suspended towards the end of the financial year due to the pandemic.

The company’s board has also recommended a dividend of Rs 7.50 per share for the financial year 2019-20.

Among Birla Corporation’s peer shares, UltraTech Cement and JK Lakshmi Cement were trading one percent in the red and green, respectively, as the real estate sector gradually opens up after the coronavirus-induced lockdown.

Meanwhile, the broader market witnessed a positive day of trading. At 2:30 pm, the BSE Sensex was up more than 900 points, or nearly 3 percent at 31, 519.24.