Binani Cement Q3 net profit up significantly

Binani Cement Q3 net profit up significantly
28 January 2010

Increased capacity and demand has helped cement manufacturer, Binani Cement, post a 573 per cent jump in its net profit in Q3 FY 10 at Rs 57-crore as against Rs 8.5-crore in the year-ago period.

"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 more revive activity in the south," Binani Cement’s Managing Director, Mr Vinod Juneja, told reporters here on Tuesday.

However, Mr Juneja said that there could be a pressure on profit margins due to increase in input and logistics costs and inflation. On pricing, there could be Rs 5-7 a bag upward or downward movement, he said, adding that even if there is excess capaci ty in the industry due to slack demand, "it will not bother us. Whatever we produce, we will be able to," Mr Juneja said.

Net sales in the third quarter for the company were up 12 per cent at Rs 402-crore compared with Rs 360-crore in the year-ago period.
Published under Cement News