Mumbai : Reflecting better realisation and soaring demand, Binani Cement has posted 152 per cent rise in net profit at Rs 64.13 crore in the fourth quarter ended March 31, 2008, against Rs 25.47 crore logged in the corresponding period last year. The company has announced a dividend of 2.50 a equity share.
Net sales in the quarter under review rose 80 per cent to Rs 336 crore against Rs 186 crore last year. Power and fuel cost at Rs 97 crore (Rs 34 crore) and freight and transport expenditure at Rs 69 crore (Rs 39 crore) has almost doubled in the fourth quarter.
For the financial year ended March 31, 2008, net profit was up 84 per cent at Rs 176 crore (Rs 96 crore), while net sales stood higher at Rs 979 crore (Rs 680 crore), a rise of 44 per cent. The price realisation in fiscal 2008 was at Rs 1,100 a tonne.
Vinod Juneja, Deputy Managing Director, Binani Group, said, “new capacity additions and better realisation has added up to our bottomline. With the Government measures to bring down cement prices, we expect the realisation to moderate at Rs 1,000 a tonne in the next financial year.”
The company plans to invest Rs 2,000 crore in the next three years to double the capacity from 6 million tonnes per annum (mtpa) to 12 mtpa by 2012.“We have appointed Ernst & Young as consultant to prepare the roadmap for our fund raising programme. As the capacity expansion involved doubling capacity at our Dubai and China units, we may also consider issuing ADR (American Depositary Receipts) and GDR (Global Depositary Receipts),” Juneja said.
Binani Cement would invest $70 million to double the cement capacity of its plant in China to two mtpa and double capacity in Dubai from 0.85 mtpa.
The company is looking to set up two grinding units overseas – one in Mauritius and the other in the Ivory Coast, Ghana or Nigeria. It is also scouting for mining rights in Indonesia.