Cement maker Birla Corporation’s stock surged for the second straight session, on Wednesday, 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 per cent, after touching an intra-day high of Rs 580. The shares have risen nearly 43 per cent in the last two sessions.
Birla Corporation registered a net profit of Rs 195 crore, up 51.9 per cent on a year-on-year (YoY) basis, despite dispatches grounding to a halt in the later part of March and loss of volumes due to the situation arising out of 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 peers, UltraTech Cement and JK Lakshmi Cement were trading one per cent 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 per cent at 31, 519.24.