India: Birla Corporation has witnessed a sharp drop in its first quarter profit to US$2.55m from US$15.2m a year ago. Income stood at US$119m against US$132m.
Harsh V Lodha, Birla Corporation chairman, said that poor demand in the company's major markets in the north and central regions put cement prices under severe pressure. He added that, though realisations during the quarter were very low, BCL could partially mitigate its impact on profitability by improving operational efficiencies in various areas. The resilient markets in east provided some relief. Lodha said that the company was installing equipment to set up the alternative fuel and raw material system to increase the use of alternative fuel on a continuous basis at its clinker units. This initiative to utilise agricultural waste and will be operational by the first quarter of its 2017 fiscal year, which ends on 30 June 2016.
