B K Birla Group flagship Kesoram Industries today went into the red as it reported a net loss of Rs 15.26 crore in the third quarter due to rise in rubber prices and contracted demand and prices of cement.
"Results for the current quarter and nine months vis-a-vis the corresponding previous periods are affected primarily due to sluggish demand and decrease in cement prices in southern India and steep hike in rubber prices in the tyre unit," it said in a filing to the Bombay Stock Exchange.
The company having interests in diversified areas like tyre and cement manufacturing had clocked Rs 36.83 crore net profit in the corresponding quarter last fiscal.
While net sales of Kesoram Industries rose to Rs 1,394.82 crore during the quarter from Rs 1,245.79 crore a year ago, total expenditure, including the raw material account, went up to Rs 1,367 crore from Rs 1,182 crore during the October-December quarter of the last fiscal.
Raw material accounted for Rs 754.14 crore of the total expenditure during the quarter against Rs 610.40 crore in the year-ago period.
Of the net sales, cement business contributed to Rs 405 crore, down by over Rs 20 crore from the same quarter last fiscal. The tyre business, however, was on the positive terrain recording over Rs 154 crore increase in sales to Rs 907.54 crore in the reporting quarter over the corresponding quarter last fiscal.
