Net profit for the JK cement Ltd may remain subdued in the second quarter (ending September 2010) due to oversupply coupled with monsoon.
Most of the cement companies including JK cement posted decline in net profits in the results for the first quarter ended June 2010 mainly because of oversupply.
Yadupati Singahnia , managing director &CEO, JK cement Limited maintained monsoon probably would erode the net profit margins for the company in the second quarter as well.
Singhania however, maintained the prolonged monsoon would help the cement industry in longer run as good monsoon would pent up the demand for cement in next few months. The company is also targeting 15-20 per cent increase in cement prices, after the monsoon period is over.
Singhania revealed JK cement was also in process expanding the grey cement capacity at Rajasthan by 2-3 million tonnes a year in next 2-3 years. The cost of expansion is estimated to be '1,500 crore including the captive power plant.
The company at present has manufacturing facilities in Rajasthan and Karnataka(commissioned last year) for manufacturing grey and white cement. While the total production of grey cement at present is 8.26 million tonnes a year, it is 3.01 lakh tonnes annually, for white cement.
Yadupati Singhania was here to announce hosting of 19th Architect of the years ward at Chandigarh. The Architect of the Year Awards would be held Chandigarh on the 9 September where winning architects from Indian and abroad would be honoured.
The awards are divided into three categories :Indian Architecture Awards, Indian State Architecture Awards And Focus Countries Architecture Awards.
