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Binani Cement registers 42% net sales growth

Business

Binani Cement Ltd, the flagship company of Braj Binani Group, announced its results for the second quarter ended 30 September, 2009 of FY 10. The company has registered an increase in net sales by 42% to Rs. 433 crore as compared to Rs306 crore in Q2 FY09. Commenting on the Company’s performance in second quarter of financial year 2009 and business outlook, Vinod Juneja, Managing Director, Braj Binani Group said: “Binani Cement is fastest growing single integrated plant in India and also first to launch 2 million tonne capacity in China. The company will achieve all its target in production, profitability, etc. This year will be a historic year for the company.”

HIGHLIGHTS Q2 FY10:
Net Sales increased by 42% to Rs. 433 crore as compared to Rs 306 crore in Q2 FY09
EBIDTA gone up by 143% to Rs. 163 crore from Rs 67 crore in Q2 FY09
PBT of Q2 FY10 stood at Rs. 122 crore as compared to Rs 30 crore in Q2 FY09, registering an increase of 307%
PAT of Q2 FY10 stood at Rs. 101 crore as compared to Rs 27 crore in Q2 FY09 registering an increase of 274%
Sales volume grown to 12 Lakh ton, reported a growth of 30%

HALF YEAR FY10 Vs. HALF YEAR FY09
Net Sales increased by 51% to Rs. 957 crore as compared to Rs 632 crore in Half Year FY09
EBIDTA gone up by 104% to Rs. 333 crore from Rs163 crore in Half Year FY09
PBT of Half Year FY10 stood at Rs. 250 crore as compared to Rs 91 crore in Half Year FY09, registering an increase of 175%
PAT of Half Year FY10 stood at Rs. 208 crore as compared to Rs 80 crore in Half Year FY09 registering an increase of 160%
Sales volume grown to 26 Lakh ton, reported a growth of 40%
Net Sales realization has gone up by 10.40% from Rs. 3191 MT in Half Year FY 09 to Rs. 3523 MT in Half Year FY 10
Power generation (net of Captive consumption) increased by 23% to 1010 lakh kwh

NOTE ON Q2 FY10 RESULT:
The Second phase of the 2 x 22.3 MW power plants has started generation of power from July, 09.
The installation of one additional cement grinding and packing plant at Binanigram is expected to be completed by the end of 2009. Consequently, the Company will have flexibility for optimising its product mix and increasing the existing cement capacity from 6 MTPA to 6.25 MTPA.
The company has decided to invest in a wholly owned overseas subsidiary to ensure long term availability of coal.
Approval for mines for the proposed greenfield project in Gujarat having 2.5 Million Tonne Clinker/Cement production capacity is awaited from the Government of Gujarat.
Land acquisition and development work is in progress for the lignite project at Nimbri Chandawatan, Rajasthan at a total project cost of Rs.100 Crores. Production from the mines is expected by 3rd Qtr. 2010.
The expansion of the capacity of the grinding unit of Binani Cement Factory LLC, UAE, a Subsidiary of BCL, from 1.2 Million MT to 2.0 Million MT is expected to commence from November 2009.
Shandong Binani Rong’An Cement Co. Ltd., China, a Subsidiary of BCL, has undertaken expansion of its Cement manufacturing capacity from 0.50 Million MT to 3.00 Million MT at an estimated project cost of Rs.600 Crores. The land acquisition and project design and engineering works are in progress. The plant is expected to go into production by mid 2011.

Key Developments
Binani gram Power Plant No.4 successfully commenced operations from July, 09
Bulk loading of Cement from Silo no 6 commissioned in April’ 09
New cement Mill and Packer at Binanigram to be commissioned by Dec’ 09 to augment cement dispatches
Upgradation of Railway siding with additional railway line will be completed by Dec’ 09
Extension of wagon loading belt to third loading point in both sides expected to be commissioned by March ‘ 10
To enhance availability of packers interconnectivity with silos shall be done by March’ 10
Binani Cement ltd has a limestone reserve sufficient for the next 30 yrs situated in Binanigram, Rajasthan
Lignite Mines: Nimri Lignite Block near Nagor district, Rajasthan comprises a polygonal area of 56.4 sq km. Exploration and mining lease application has been confined to the Nimri mine site area of 3.5 sq km located in the north central part of the block. The extractable reserve in the mine site area is about 5.5 million tones. Further exploration of the block would enhance the lignite resources
BCL has CAPEX plans of Rs.1700 crore to be spent over the next 2-3 years which includes Greenfield expansion in Gujarat, Grinding unit in Mauritius, Expansion in China & mine development in Nimbri Chandawatan, Rajasthan.
Binani has made long term arrangement of coal for captive purpose by acquiring coal mines in Indonesia near the coastal belt with a total investment of up to 15 million US$.

About Binani Cement: The flagship subsidiary of BIL, the Braj Binani Group is Binani Cement Ltd with gross asset value of Rs 2598 crores and gross income of Rs 1348 crores as of September 30th , 2009 and cement manufacturing capacity of 8.5MTPA, with subsidiaries in Dubai and China. The company’s product portfolio includes Ordinary Portland Cement, Pozzolona Portland Cement and Ground Granulated Blast furnace Slag (GGBFS in Dubai). The products are marketed under the premium “Binani Cement” brand name and enjoy significant market share in Rajasthan and other regions in northern and western India, sharing top-notch status with many of the nation’s leading cement brands.The company is certified as ISO 9001, ISO 14001 and OHSAS 18001 compliant within a short span of commencement, an achievement that clearly illustrates the management’s commitment to quality, efficiency, and the environment.

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