Net profit of the company rose 105 percent to Rs. 700mn as compared with Rs. 340mn a year ago.
India Cements has reportedly acquired a coal mine in Indonesia, which is expected to go on stream by January 2012, for $20 million.
According to reports, India Cements is also in the process of setting up a 50 Megawatt power plant near Tirunelveli in Tamil Nadu. Sluggish growth of cement, increase in fuel and power cost, higher interest rate is the concern of the company and the industry as well. While the input cost have increased 7-8 percent, output cost rose only 2 percent.
N Srinivasan, vice chair and managing director, India Cements was quoted as saying “The coal mine acquisition is a strategic decision, it will reduce our exposure to the fluctuating coal price internationally. Despite a 4 percent fall in demand across south India, the company managed to post good profit. Its capacity utilisation was around 68 percent, due to the excess capacity in South India, which is currently around 100 million tonnes.”
Net profit of the company rose 105 percent to Rs. 700mn as compared with Rs. 340mn a year ago. The company posted around 30 percent increase in net sales to Rs. 10,920mn as against Rs. 8,430mn during the same quarter last year, reports added.