Birla Corporation

• Total Installed Cement Capacity for 2024 : The sources do not explicitly state the total installed cement capacity for 2024. However, notes that Birla Corporation acquired Reliance Cement Co. in 2016, increasing its total production capacity to 15.5 million tons. Also, mentions its Mukutban unit started commercial operations in 2022 with a capacity of 3.9 million tons. Lastly, states Birla Corporation’s goal of 25 million tons by 2027.

• % of revenue from Cement for 2024 : Cement accounted for 95.70% of the company’s revenue in 2024.

• Utilization rate for 2024 : The sources do not provide a specific utilization rate for 2024.

• Production for FY 2024 :

  • Clinker production for Birla Corporation Limited was 61.11 lakh tons.
  • Cement production for Birla Corporation Limited was 96.20 lakh tons.
  • Clinker production for RCCPL Private Limited, a wholly owned subsidiary, was 53.56 lakh tons.
  • Cement production for RCCPL Private Limited was 82.03 lakh tons.

• EBITDA for FY 2024 : The consolidated EBITDA for FY 2024 grew 72% to 1,523.17 crore, versus 885.06 crore in the previous financial year.

• EBITDA per ton in 2024 : The EBITDA per ton for the full year was 808, representing a year-on-year growth of 69.04%.

• Capacity Expansion Plans :

  • Birla Corporation is planning to reach a capacity of 25 million tons by 2027.
  • The company has plans for two new units in Kundanganj and Bihar. However, no firm dates have been announced for these projects.
  • Birla Corporation is not planning any clinker capacity expansion at this time.
  • A grinding unit expansion is in progress and will be completed in due course.

• Total Debt from the balance sheet for 2024 annual report : The standalone total borrowings as of the end of March 2024 were 3,769.73 crore. The consolidated total borrowings are not provided in the sources.

• Total Cash & Cash equivalents from the balance sheet for 2024 annual report : This information is not available in the provided sources.

• Recent developments from conference calls – including cost-saving initiatives, capacity expansion initiatives with timelines and milestone :

  • Cost reduction initiatives are ongoing, with a focus on continuous improvement. These include increasing the use of renewable energy and other initiatives as part of CAPEX.
  • Manufacturing transformation projects are underway across all areas of operations, including efficiency.
  • The company is focusing on increasing the percentage of renewable energy used in production. In Q4, it was at 27% and is expected to improve gradually.
  • The Bikram coal mine is expected to be commissioned in Q4 FY25, but significant savings are not anticipated this year as it will be in a ramp-up phase.
  • Management did not provide details on the ramp-up plans for captive coal in FY25 and FY26.

Looks fairly valued with EV/ton of $77.75 .