The net income for the period under review was up by a mere 1.6 per cent at Rs 1,135.5 crore as against Rs 1,117.2 crore in Q1 of the 2001-02, company chief financial officer D Rathi told reporters here on Thursday. The viscose staple fibre and cement divisions performed well during the quarter with the former contributing 36 per cent to the turnover (27 per cent in the April-June 2001), Mr Rathi said. The VSF sales volumes were up 48 per cent in Q1 and helped to offset the drop in price realisation of eight per cent at Rs. 66,457 per metric tonnes, he said adding “the performance may not sustain at the same level for the FY-03”. Cement division’s volumes grew by 9 per cent but there was a 15 per cent drop in price realisation at Rs 1,736 per metric tonne in the quarter, Mr Rathi said.
The company’s cement business in the western region came under stress due excess supply from new capacities. The company would add two million tonne capacity in the FY-03, taking overall capacity to 13.4 million tonnes. “Cement business is expected to show 9-11 per cent growth for remaining quarters and prices are likely to firm up after monsoon,” he added.