Coal news and updates

Birla Corp to invest Rs 950 crore in four states

October 31: Birla Corporation Limited, the flagship company of the MP Birla Group, would invest around Rs 950 crore to set up six grinding and blending units having an aggregate installed capacity of about 4.5 million tons, said a company release.

The management of the company expects these units to help to bring down logistics costs, one of the main reasons for the decline in its net profit during the quarter ended September 30 (Q2, 2013).

"The board of directors has approved the setting up of three grinding/blending units in Madhya Pradesh, one grinding unit in Bihar, one blending unit in Uttar Pradesh and another blending unit in Jharkhand, having an aggregate installed capacity of about 4.5 million tons, at an estimated cost of around Rs 950 crore,"  the company said in a statement.

Meanwhile, the company's net profit for Q2, 2013-14 dropped 48% to Rs 48.58 crore, compared to Rs 80.24 crore in the corresponding period last year (Q2, 2012-13).

The company said lower realisation and higher logistics costs and power and fuel expenses are the main reasons behind the lower net profit.

In the quarter ended June (Q1, 2013-14), the net profit of the company was at Rs 45.99 crore.

Following are the Q2 results of Birla Corporation limited in 2013-14 and 2012-13 (in Rs crore)