|Yogesh Kolte||Ms. Bina Verma|
|Madison Public Relation||Binani Cement Ltd.|
|Cell: +91 98203 09121||• Cell: +91 98200 82242|
|Tel: +022 66103496||• Tel: 022 2266 6482|
|Email: email@example.com||• Email: firstname.lastname@example.org|
October 23, 2007, Mumbai: Binani Cement Limited (BCL) has posted a Profit before Tax of Rs. 111.36 cr on a turnover of Rs. 490 crore for the half year ended September 30, 2007. The Profit after Tax for the half year ended September 30, 2007 is Rs. 98.54 cr. In the corresponding previous year the Profit before Tax was Rs. 77.5 crore on a turnover of Rs.378.9 crore. The Profit after tax for the half year ended Septembers 30, 2006 was Rs. 52.69 crore.
During the second quarter ended September 30, 2007, BCL made a profit before tax of Rs.54.12 crore on a turnover of Rs.256.5 crore as compared to the corresponding previous year profit before tax of Rs.35.11 crore on a turnover of Rs.177.57 crore
BCL’s second unit commenced commercial operations from October 02, 2007 taking up the cement capacity from 2.25 mio TPA to 5 mio TPA. The capacity will further increase to 6 mio TPA in the 4th quarter of 2007-08. With increase in production capacity the cement production for full year is expected to be 4 mio Tonnes. During the half year ended the production from firs unit was 1.3 mioT.
Exploration work on the lignite mines at Nimri Chandavan, Rajasthan has commenced and is expected to start production in 2009. The captive lignite mines will reduce the power cost.
BCL has recently acquired a clinker/cement plant in Shandong Province, China with management stake. The plant has 148mio Tonnes of limestone reserves and has necessary permission to scale up capacity to 2.2 mio TPA.
Mr. Vinod Juneja, Deputy Managing Director, Binani said, “Improvement in operating efficiencies and concerted efforts of the management and its team has borne fruit”
BCL got listed in the end of May 2007 and in October 2007; BSE has included BCL in BSE 500 category. The offer for sale by M/s J P Morgan was priced at Rs.75/- share; immediately after which the Company declared dividend of Rs.2/- per share. The highest market price is Rs. 130/- share. The EPS based on half year results is Rs. 4.85 on a Share capital of Rs. 203 crore. Only 10% of total equity is available in the market and the balance 90% is held by Binani Industries Limited (65%), J P Morgan (15%) and Credit Suisse (10%).
BCL is the flagship company of the Braj Binani Group which has interests in Cement and Glass Fibre. BCL’s cement plant is situated in Binanigram, Pindwara, Sirohi, Rajasthan. In order to reduce freight cost the second grinding mill is being setup in Neem Ka Thana closer to Haryana and the adjoining NCR region. BCL’s main markets are Rajasthan, Gujarat, New Delhi and the NCR region. With the capacity expansion, it plans to extend its market areas to interior Uttar Pradesh and Maharashtra. BCL also has a railway siding connecting to a broad guage line which connects New Delhi, Ahmedabad and Mumbai. BCL’s operating parameters are comparable with the best in the industry. BCL has further plans to expand its capacity to 10-12 mio TPA in the next 2-3 years.