Birla reports stable profits on higher sales

ERJ staff report (DS)

Kolkata, India -- Kesoram Industries has reported its results for the three months to 30 September 2010. The company's tyre operations -- which is represented by Birla Tyres -- saw sales increase to Rs 7884 million (euro 127.7 million) from Rs 6780 million. For the six months, revenues increased to Rs 17 330 million from Rs 13 337 million.

Pre-tax profits for the tyre segment in the three month period remained stable, at Rs 241 million (euro 3.9 million), compared with Rs 25.9 million a year earlier. For the six months, profit reduced sharply, to Rs 289 million, from Rs 651 million.

The company said, "The operations at Birla Tyres, Uttrakhand unit of the Company had to be suspended between 19th September, 2010 to 24th September, 2010 on account of unprecedented flood in that region. As a result of such flood certain inventory items got damaged for which related insurance claims of Rs 48.16 crore have been lodged and the Company within the period has also received Rs 4.00 crore as on account payment. "

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Press release from Kesoram Industries