State-owned Nepalese Hetauda Cement Factory earned a profit of Rs 40 million in the last fiscal year, despite encountering problems triggered by the trade embargo.
The company has set a target of generating Rs 200 million in profit in the current fiscal year by significantly reducing the production cost.
The cement factory was forced to shut down its operation for five months in the last fiscal year due to shortage of coal triggered by the trade embargo. But it is optimistic about enhancing its performance this year because of hike in cement price.
Although the cost of producing 50 kg of cement has gone up to Rs 654 this year from Rs 586 a year ago, retail price of cement has also gone up, according to Prem Shankar Singh, General Manager of Hetauda Cement. “This hike in retail price will help us meet the target of generating profit of Rs 200 million in this fiscal year,” said Singh