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| Binani Cement Q3 net rises 573% |
| Press Trust of India / Mumbai Jan 27, 2010, 18:23 IST |
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Increased capacity and demand have helped cement manufacturer Binani Cement post a whopping 573 per cent jump in net profit at Rs 57 crore in the third quarter this fiscal compared to the same period last year.
"Demand has come up from the Commonwealth Games. Moreover, because of the Telangana issue in Andhra Pradesh which now looks like settling down will now revive activity in the south," Binani Cement's Managing Director Vinod Juneja told reporters here today.
The company has a capex plan of Rs 1,700 crore over the next 2-3 years, including greenfield expansion in Gujarat, a grinding unit in Mauritius, expansion in China and seven mine developments in Nimbri Chandawatan in Rajasthan.
For its Chinese expansion, the company has earmarked a capex of $114-million by June 2010.
On pricing, Juneja said there could be a Rs 5-7 a bag, upward or downward movement, adding even if there is excess capacity in the industry due to slack demand, "it will not bother us."
However, there could be some pressure on profit margins due to increase in input and logistics costs and inflation, he said.
Rajasthan-based Binani has also been working on a plan to scale up its annual capacity from 6-million to 9-million tonnes by 2012.
Net sales in the third quarter were up 12 per cent at Rs 402 crore compared with Rs 360 crore in the year-ago period. Net profit in the year-ago period was Rs 8.5 crore.
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