The Hindu Business Line : Kesoram posts record Q1 net on high cement prices

Kesoram Industries Ltd, the flagship company of the BK Birla Group, has registered 438 per cent growth in net profit during the first quarter ended June, to Rs 63.40 crore from Rs 11.78 crore in the corresponding previous period.

Profit before depreciation increased by 300 per cent to Rs 100 crore (Rs 25 crore).

Turnover rose 22 per cent to Rs 554 crore (Rs 456 crore), while EPS grew to Rs 13.86 (Rs 2.58).

The tyre division's turnover increased to Rs 250.87 crore (Rs 210.42 crore), while the cement business saw turnover rise to Rs 273.78 crore (Rs 171.21 crore).

Speaking to newspersons, Mr S.K. Parik, Director and Secretary, said that the latest figures are "record profits" for any quarter in the company's history.

"Cement prices in Karnataka and Andhra Pradesh were high and this resulted in higher turnover and profits."

On the ongoing expansion projects, Mr Parik said that the new cement and tyre capacities would go on stream by December.

Kesoram is expanding its cement capacities of both plants in Andhra Pradesh and Karnataka by 1.65 million tonnes a year to take the total capacity to 4.6 million tonnes.

The cost of this expansion is Rs 425 crore; of this, the loan component is Rs 315 crore, while the rest would be generated from internal accruals.

In the tyre division, capacity of truck tyres is being increased by 15,000 tonnes and light commercial vehicle tyre production by 10,000 tonnes. Kesoram's total tyre capacity will now touch 17.25 lakh tonnes. The cost of this expansion is Rs 65 crore and is to be funded through internal accruals.