The Hindu Business Line : Kesoram Ind posts 36 pc growth in net

Kesoram Industries Ltd, the flagship company of the B.K. Birla Group, has registered a 36 per cent growth in its net profit for the year ended March 31, 2006.

Compared to Rs 33.51 crore registered in 2004-05, Kesoram Industries' net profit jumped to Rs 45.7 crore in 2005-06. Profit before tax jumped even higher from 43.61 crore it increased by 86 per cent and ended at Rs 80.92 crore.

Growth in net profit was lower compared to profit before tax because Kesoram Industries has increased the provision for deferred to Rs 34 crore against Rs 10 crore in 2004-05.

Net sales increased by 9.87 per cent and ended at Rs 1877.81 crore from Rs 1709.01 crore. Total income increased by 13 per cent and ended at Rs 1931.55 crore compared to Rs 1780.38 crore in 2004-05.

Tyres, cement units

Contribution of the tyres division, known in the market as Birla Tyres, continued to be the highest. From Rs 752.29 crore in 2004-05, it increased to Rs 867.50 crore. Tyre section's profit before tax increased to Rs 38.44 crore.

Earnings of cement division increased to Rs 734.93 crore from Rs 665.77 crore. Its profit before tax and interest was Rs 77.41 crore.

Losses of the rayon and transparent division, which was closed since January 30, 2006, dropped to Rs 5.29 crore from Rs 8.62 crore. Its total income has also dropped to Rs 182 crore from Rs 188 crore.

The company is still committed to selling its heavy chemicals business. In January, the management of Kesoram Industries had hived off into a wholly owned subsidiary.