The company has provided for extra-ordinary expenses to the tune of Rs230mn. These include write down in value of assets in view of the closure of the Synthetic Ferric Oxide plant due to adverse market conditions and another Rs130 of provision for contingent losses for its other subsidiary companies. The company has the flexibility to write back this provision in case losses do not materialize. The 2mn ton Wadi cement unit which has the largest kiln in the country has been commissioned for trial production and is expected to go on full stream shortly. Outlook Cement prices are likely to remain firm for the remaining period of this fiscal on the back of supply side arrangements entered into by the cement manufacturers.
Demand is likely to remain generally lackluster with certain pockets showing good demand.
We expect demand growth to pick up after the monsoons provided the country witnesses normal to above average monsoons. A fortune in black gold. All rights reserved.