Birlanu , a leading player in the building materials and flooring solutions sector, reported a 4.9% year-on-year decline in consolidated revenue for the first quarter, amidst challenging market conditions and pricing pressures across product categories.

Financial Performance

The company's consolidated revenue stood at INR 1,052.00 crore for Q1, down from the previous year. EBITDA came in at INR 59.00 crore, compared to INR 74.00 crore in the same quarter last year. Profit before tax (PBT) was reported at INR 5.00 crore.

Segment-wise Performance

Roofing

• Revenue: INR 442.00 crore, down 4.7% year-on-year
• Impacted by subdued rural markets and price erosion
• Maintained market leadership and price premium

Walls

• Revenue: INR 138.00 crore, up 2% year-on-year
• Volume growth across all product lines
• Panels and boards showed improved margins

Pipes and Construction Chemicals

• Overall revenue: INR 168.00 crore, down 14% year-on-year
• Pipes revenue: INR 124.00 crore, down 17%
• Construction Chemicals: 37% year-on-year growth

Parador (Flooring)

• Revenue: INR 304.00 crore, down 3% year-on-year
• Turned operationally positive with INR 5.00 crore operating profit

Market Challenges and Company Response

Birlanu faced several headwinds during the quarter, including:

• Weak demand across product categories
• Early onset of monsoon affecting construction activities
• Input price pressures
• Excess capacity in the industry

Despite these challenges, the company reported:

• Market share gains in Construction Chemicals, Wall segments, and Parador operations
• Improved operating performance in Parador, turning from a loss to profit
• Maintained financial discipline with a debt-equity ratio of 0.55

Strategic Initiatives

Birlanu is focusing on several strategic initiatives to drive growth and improve profitability:

1. Expanding capacity in high-growth categories
2. Driving premiumization and innovation across the portfolio
3. Leveraging cost and productivity measures to protect margins
4. New product development, particularly in pipes, construction chemicals, and wall segments

Outlook

While cautious about the near-term external outlook, Birlanu's management remains confident in the company's positioning to capture opportunities as demand recovers. The company expects the second half of the fiscal year to show improvement, particularly in the Parador segment.

Expansion Plans

Birlanu has outlined capital expenditure plans of approximately INR 500.00 crore over the next 3-4 years, focusing on investments in construction chemicals, pipes and fittings, and a new fiber cement boards plant.

The company maintains its long-term vision of reaching the $1 billion revenue mark, with plans to achieve this through both organic growth and potential inorganic opportunities in key growth segments.

As Birlanu navigates through the current market challenges, it remains committed to building a high-performance, purpose-led culture to drive its next phase of growth.

Birlanu (formerly HIL Limited), a leading provider of home and building solutions, has reported a challenging first quarter, facing headwinds in demand and pricing across multiple product categories.

Financial Performance

The company's consolidated revenue for Q1 stood at ₹1,052.00 crore, marking a 4.9% decrease compared to the same period last year. This decline was primarily attributed to weak demand, early onset of monsoon, pressure on input prices, and excess capacity across most product categories.

Birlanu's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a significant drop to ₹32.00 crore, down from ₹74.00 crore in the corresponding quarter of the previous year. The company reported a net loss of ₹25.00 crore for the quarter, in contrast to a profit of ₹5.00 crore in the same period last year.

Segment Performance

The company experienced mixed results across its various segments:

• Roofs, Pipes, and Floors: These segments faced de-growth, impacting overall revenue.
• Construction Chemicals: Showed strong growth of 37% year-on-year.
• Walls: Registered a modest growth of 2%, driven by strong momentum in Panels and Boards business.

Price declines of 2-6% in Roofs and Walls segments further impacted operating margins.

Parador Subsidiary Performance

Birlanu's Parador subsidiary, despite facing a challenging market, showed signs of improvement:

• Revenue declined to ₹304.00 crore
• Operating profits improved to ₹5.00 crore, up from a loss of ₹2.00 crore in the previous year

Market Challenges and Industry Trends

The company highlighted several industry-wide challenges:

• Muted traditional high season for the Roofs segment, with an estimated industry de-growth of ~1.2%
• PVC resin prices continued their downward trend, being 15% lower compared to last year
• Early rains reduced construction activity, impacting demand for Walls and Pipes
• Subdued government spending in key segments

Future Outlook and Initiatives

Despite the challenging quarter, Birlanu remains focused on future growth and efficiency:

• Progressing on a new OPVC facility in Patna
• Embarking on an ambitious greenfield project in Andhra Pradesh for Designer Boards and other products
• Planning to launch innovative products across all segments in the coming months
• Continuing to exercise discipline on efficiency and value levers

Management Commentary

Akshat Seth, MD & CEO of Birlanu, commented on the results: "Q1 has been a testing quarter for Birlanu, as it has been for the industry both in India and in our global markets. We remain cautious of the near-term external outlook and will continue to exercise discipline on efficiency and value levers."

Seth also highlighted the company's recent rebranding efforts: "The recent re-branding has energized our efforts in the marketplace, and we will further build on that momentum this year."

As Birlanu navigates through these challenging market conditions, the company remains committed to innovation, operational efficiency, and strategic growth initiatives to improve its performance in the coming quarters.