Binani Cement Limited, the flagship company of Braj Binani Group, has registered net sales of Rs4290.4mn for first quarter ended 30 June, 2010. The company’s power generation (net of captive consumption) has shown an increase of 97% to 773 lakh KWH compared to 392 lakh KWH in the corresponding quarter last year.
Commenting on the Company’s performance in Q1FY11, Vinod Juneja, Managing Director, Braj Binani Group said, “Due to lackluster season this quarter and seasonal impact of monsoon has impacted sales growth. It was tough quarter this year in terms of profits which got affected mainly due to increase in international coal prices and increase in freight charges”.
The company has reported a profit before tax of Rs527.3mn for the quarter ended June 2010, while for the same period its net profit stood at Rs426.7mn. During the same period its EBIDTA stands at Rs 1004mn.
“We are expecting to maintain the margins for the whole year as we are expecting to start the production of coal from Indonesia during the Q2 FY11. This will give us access to coal for captive use and is likely to reduce our dependence on outsourcing of coal”, added Vinod Juneja.
In addition the Shandong Binani Rong Cement plant in China (SBRCCL) is in the process of increasing its production capacity from 0.5 mtpa to 3.0 mtpa this expansion is expected to be completed by the end of 2011. Apart from this Binani Cement Factory LLC, Dubai has completed the expansion of its capacity of Cement Grinding which has increased from 1.2 MTPA to 2.00MTPA.