JK Cement Q3FY07 net zooms 544%

New Delhi, Jan 29 (UNI) JK Cement today posted 544 per cent growth in its net profit to Rs 50.2 crore in the third quarter of the current fiscal, as compared to Rs 7.8 crore during the corresponding period last year.

The production of grey cement increased by 45,000 tonnes in the quarter. This coupled with improved realisation has resulted increase in company's net turnover by 44 per cent to Rs 319 crore from Rs 221.7 crore.

The Earning per share increased to Rs 7.18 as against Rs 1.56 during corresponding quarter of previous year.

The work on all the power projects is in advance stage of completion and these projects would be commissioned in first half of next fiscal, a company statement said.

It expects substantial savings in power cost after implementation of these projects, it added.

The company has taken over assets of Nihon Nirmaan Ltd from IDBI at a price of Rs 42 crore. The plant is expected to put to use by October-December 2007.

It is also planning to produce Grey Cement from the said facility and market it in the same region where company is already selling cement. It is expected that around 3 to 3.5 lakh tonnes of grey cement will be produced from the said plant.

As regards the new greenfield Cement plant of 3.5 million tonnes at Karnataka, the work has begun at site. Order for remaining long delivery items including the power project are under finalisation and project is schedule to be implemented by October 2008.

The company has two Grey Cement plants at Nimbahera and Mangrol with an aggregate installed capacity of 4 million tonnes and is one of the top five producers of grey cement in the northern region.

It is also the second largest producer of White Cement in the country having manufacturing facility at Gotan with an annual installed capacity of 0.35 million tonnes.

UNI