Binani Cement Q1 net dips 60% to Rs 43 cr

Binani Cement today reported a 60 per cent dip in net profit in the first quarter of the current fiscal at Rs 42.67 crore as sales fell and raw material costs increased.

The company had reported Rs 106.7 crore net profit in the corresponding quarter a year-ago.

"It was tough quarter this year in terms of profits which got affected mainly due to rise in international coal prices and freight charges," Binani Cement Managing Director Vinod Juneja was quoted as saying in a release.

Net sales of the company also fell to Rs 429 crore from Rs 524.3 crore a year-ago due to the last quarter's lackluster sales in the wake of the monsoon.

 

Though sales were down, Binani Cement's expenditure on raw material, power & fuel and freight costs increased to Rs 55.66 crore, Rs 117.03 crore and Rs 97.95 crore, respectively from Rs 47.61 crore, Rs 113.11 crore and Rs 86 crore during the quarter ended June, 2009.

Juneja, however, said the company would start bringing coal from Indonesia from the next quarter onwards which should reflect positively on the books.