Dalmia Cement profit falls 4% on high costs

Dalmia Cement profit falls 4% on high costs
Published: 01 February 2010

Dalmia Cement (Bharat) on Friday announced a 4% fall in quarterly net profit due to higher expenditure on raw materials and increased freight costs.

Net profit declined to Rs 23 crore in the December quarter from Rs 22 crore in the year-ago period. Its consumption of raw materials during the period increased 61% to Rs 212 crore, while expenses on freight went up 85% to Rs 52 crore, offsetting a 28% growth in net sales at Rs 518 crore. The company declared an interim dividend of 50% or Re 1 per share for the fiscal 2010.

The cement business has contributed Rs 313 crore against the corresponding previous period’s Rs 267 crore to topline. The company has earned Rs 162 crore and Rs 44 crore from sugar and power businesses, respectively.

“Sugar has delivered a stupendous performance given the sector buoyancy whereas the power business continues to grow,” Puneet Dalmia, managing director, said.