Quarterly Results: Birla Corporation Ltd

Technical View: 
Birla Corporation Ltd is currently trading at Rs 664.50, up by 5.2 points or 0.79% from its previous close of Rs. 659.30 on the BSE. The scrip opened at Rs 680 and has touched a high and low of Rs 682.45 and Rs 653.70, respectively. A total of 15,892 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 50 DMA.

Standalone Results Q2FY17:
Birla Corporation’s Q2FY17 standalone numbers came in mixed as against Bloomberg estimates. While the company's net revenue for the period beat the estimated figure of Rs 808 crore by 9.7%, net profit for the quarter missed the estimate of Rs 64 crore by 9.2%.
The company's net revenue for the quarter fell 4.4% YoY to Rs 887 crore, led by a 5.4% YoY decline in revenues from the cement segment.
However, the company showed a YoY improvement at the EBITDA and net profit level.
Its EBITDA rose 24.7% YoY to Rs 81 crore. This was primarily due to an 18.8% YoY decline in cost of materials consumed and 10.3% YoY decline in freight charges leading to a 212 bps EBITDA margin expansion to 9.1%. Its net profit jumped 151.9% YoY to Rs 58 crore aided by a tax credit of Rs 1 crore this quarter as against Rs 9.15 crore tax expense in Q2FY17.