Binani Cement Q2 net nosedives to Rs 1.18 cr

Binani Cement today reported a mere Rs 1.18 crore profit for the quarter ended September 2010 on fall in cement prices amidst prolonged monsoon.

The company had recorded Rs 101 crore net profit in the corresponding quarter last fiscal, it said in a statement.

"The scenario (fall in net profit) is mainly because of a drop in expected demand due to early on-set and longer period monsoons, which led to lower realisations in the industry as a whole," the company said.

"This has been further compounded by a large increase in fuel prices (coal) when compared to previous periods," it added.

 

During the reporting quarter, net sales of the company stood at 345.89 crore, down from Rs 432.57 crore recorded in the corresponding quarter last fiscal.

"With the cessation of monsoons, there are clear indications that the demand is reviving with increase in prices and therefore future performance is expected to improve substantially," Binani said.