India: Binani Cement net zooms to Rs 101 cr

Binani Cement on Thursday said its quarterly net profit rose nearly four-fold because of higher sales volume, better price realisation and lower raw material cost. The company's net profit in the September quarter stood at Rs 101 crore compared with Rs 26 crore in the year-ago period.

Net sales during the period grew 41% to Rs 432 crore. Its expenditure on power and fuel----main raw materials----has gone down to Rs 93 crore from Rs 115 crore. It had decided to invest in a wholly-owned subsidiary to ensure future availability of coal, the company said.

Although the company did not talk about its future business outlook, analysts said the domestic industry was poised to witness excess supply by the end of this year, which might affect profitability of the firms. The Cement Manufacturers' Association said domestic companies will add 110 million tonne of annual capacity in the next three years.

From China Cement [2009-10-23]