Kesoram net jumps 16-fold

BS 200 SCORECARD

Kesoram Industries witnessed a 16-fold jump in net profit in the quarter ended December 31, 2006. The BK Birla group flagship posted a net profit of Rs 65 crore compared with only Rs 4 crore in the corresponding period of the previous financial year.

The company's turnover went up from Rs 454 crore in the quarter ended December 31, 2005 to Rs 632 crore in the same period of the current financial year.

A company official said the improvement in top line and bottom line was owing to better margins in both the cement and tyre businesses.

"Last year the tyre industry was passing through a tough time, but this year the scenario is really good. The demand in cement is also buoyant," he added.

Tyre and cement taken together constitute more than 94 per cent of Kesoram's turnover.

The company is planning to invest Rs 650 crore for setting up a greenfield tyre plant in Uttarachal. It is also expanding its cement capacity to 5.1 million tonne in two phases at an investment of Rs 450 crore.