In Q3, Jaiprakash Associates’ cement division experienced a revenue increase of 30% and a total 42% growth in the 9 month period ending 31 December. Profit before interest and tax (PBIT) declined 40% to Rs.142.2 crore, but made up 20% of the company’s total PBIT.
JK Lakshmi Cement
Net profit fell 90% to Rs.4.6 crore in Q3, which the company attributed to the increasing cost of fuel and a fall in cement prices. Decreased demand and greater capacity has played a part in the latter. Power and fuel costs, meanwhile, hit Rs.104.89 crore in the quarter against Rs.77.33 crore in the same period of the previous year.
Aditya Birla’s cement business reported an increase in operating profit of 72.4% compared to Q3 of the previous year. Revenue of the division rose to Rs.3949 crore thanks to the merger with Dubai-based Star Cement. Sales volumes increased by approximately 10% to 9.17 million t, due in part to 0.92 million t of dispatches from Star Cement. Like other producers, UltraTech has noticed rising power and fuel costs impacting on profitability.
The group anticipates that cement demand in India will grow 7% this fiscal, and 8 – 10% in FY2012. Infrastructure developments in the northern and eastern regions should contribute to price hikes in these areas.
The expansion projects at Malkhed and Raipur, which will see capacity increase to 9.2 million tpa including a thermal power plant, five split grinding units and bulk terminals, is scheduled to begin as planned in this final quarter of FY2011 at a cost of ~Rs.5600 crore. The plants should be operational by FY2014. A further Rs.2200 crore in capex is planned for modernisation and upgradation, and Rs.1200 crore will serve to improve materials and logistics infrastructure. Finally, a 1.2 million tpa plant in Vilayat, Gujarat, and capacity expansion at Harihar, Karnataka are expected to be completed by FY2013.
Read the article online at: https://www.worldcement.com/asia-pacific-rim/31012011/indian_producers_announce_q3_results/