Financial Daily from THE HINDU group of publications
Tuesday, Jan 29, 2002
Financial Daily from THE HINDU group of publications Tuesday, Jan 29, 2002 |
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Corporate Results
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Cement Kesoram Industries posts 72 pc fall in Q3 net Our Bureau
KOLKATA, Jan. 28 THE B K Birla group flagship, Kesoram Industries Ltd, reported a decline of about 72 per cent in net profit in the third quarter of 2001-2002 compared to the corresponding period in 2000-2001 despite a marginal fall in net sales. Mr S. K. Parik, Director (Finance) and Company Secretary, told Business Line that the nine months of the current fiscal were marked by poor sales realisation compared to the same period in the previous year. The first and third quarters of the current year were exceptionally bad for the extreme pressure on margins, particularly in the cement business. However, the company expected to fare better in the fourth quarter as cement prices in the southern region were looking up. KIL's tyre division had done relatively well among the two major activity areas in terms of realisation. During the third quarter of 2001-02 the net profit stood at Rs 23.94 lakh (Rs 3.01 crore) on a net sales Rs 332.8 crore (Rs 339.06 crore). However, the net profit for the first nine months 2001 improved to Rs 13.58 crore from Rs 7.43 crore achieved in the comparable period of the previous year thanks to better profitability on the capital employed by the tyre division. The tyres division provided a sales revenue of Rs 163.1 crore, while the cement contributed Rs 113 crore in the Q3 of 2001-02. The net profit provided by tyre division was Rs 7.06 crore, while cement provided Rs 17.01 crore. But the interest cost of Rs 16.92 crore was largely attributable to the cement division. The capital employed in tyre division was Rs 207.73 crore and in cement business was Rs 402.81 crore. According to Mr Parik, the company has so far bought back around five per cent shares (25,64,980 shares) of KIL at an average cost Rs 23.67 per share from the open market. The deal for sale of the oil and solvent extraction division at Guntur in Andhra Pradesh and Malkapur in Maharashtra would be entered into shortly, he said.
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