Birlanu , a prominent player in the building materials industry, has announced the resumption of its manufacturing operations across six states in India. This development comes after the company received necessary approvals from local authorities, marking a significant step towards normalcy amidst the ongoing COVID-19 pandemic.

Widespread Resumption of Operations

The company has restarted its manufacturing activities at facilities located in:

• Maharashtra (Wada)
• Andhra Pradesh (Kondapalli)
• Odisha (Balasore)
• Jharkhand (Jaisidih)
• Gujarat (Golan)
• Haryana (Jhajjar)

Birlanu obtained the required approvals from authorities in Maharashtra and Andhra Pradesh to commence manufacturing activities, subject to compliance with guidelines set by the Ministry of Home Affairs (MHA).

Safety Measures and Compliance

In line with the regulations stipulated by the MHA and respective state governments, Birlanu has implemented comprehensive safety and health measures for its employees and customers. These precautions are crucial to ensure a safe working environment and to mitigate the risk of COVID-19 transmission.

Operational Challenges and Adaptations

While the resumption of operations is a positive development, Birlanu faces operational challenges due to the ongoing pandemic:

1. Limited Infrastructure: The company is currently operating with restricted infrastructure as many employees continue to work from home.

2. Partial Dispatches: Birlanu has initiated dispatches in unaffected areas, indicating a phased approach to full-scale operations.

This strategic restart of manufacturing activities across multiple states signals Birlanu's efforts to balance business continuity with safety considerations. As the situation evolves, the company's ability to adapt to the new normal while maintaining productivity will be crucial for its performance in the coming months.

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.