Binani Cement the flagship company of Braj Binani Group has reported 60.01% drop in its net profit for the quarter ended June 30th 2010 to stand at 426.7 million as against 1,067 in the same quarter a year ago.

As per report it registered net sales of INR 4,290.4 million for Q1 ended June 30th 2010. The company has reported a profit before tax of INR 527.3 million for the quarter ended June 2010, while for the same period its net profit stood at INR 426.7 million. During the same period its EBIDTA stands at INR 1,004.3 million.

The company’s power generation has shown an increase of 97 % to 77.3 million KWH compared to 39.2 million KWH in the corresponding quarter last year.

Mr Vinod Juneja MD of Braj Binani Group said that “Due to lackluster season this quarter and seasonal impact of monsoon has impacted sales growth. It was tough quarter this year in terms of profits which got affected mainly due to increase in international coal prices and increase in freight charges.”

Mr Juneja added that “We are expecting to maintain the margins for the whole year as we are expecting to start the production of coal from Indonesia during the Q2 FY11. This will give us access to coal for captive use and is likely to reduce our dependence on outsourcing of coal.”

In addition the Shandong Binani Rong Cement plant in China is in the process of increasing its production capacity from 0.5 million tonne per annum to 3 million tonne per annum this expansion is expected to be completed by the end of 2011. Apart from this Binani Cement Factory, Dubai has completed the expansion of its capacity of Cement Grinding which has increased from 1.2 million tonne per annum to 2 million tonne per annum.

(Sourced from IRIS)