Financial Daily from THE HINDU group of publications
Thursday, Jan 30, 2003
Financial Daily from THE HINDU group of publications Thursday, Jan 30, 2003 |
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Corporate Results
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Cement Corporate - Financial Performance Madras Cements sales income down, Q3 PAT up 22% Our Bureau
CHENNAI, Jan. 29. DESPITE a nine per cent fall in sales income, Madras Cements Ltd has reported a 22 per cent increase in profit after tax for the third quarter ended December 31, 2002 when compared to the same period last year. The company attributed the drop in sales income to the decline in average realisation per tonne of cement while the growth in net profit came from tight control on costs at all stages of operation. In the third quarter of this year, Madras Cements reported a sales income of Rs 137.67 crore and a net profit of Rs 1.49 crore against a sales income of Rs 151.46 crore and a net profit of Rs 1.22 crore. For the nine-month period ending December 31, 2002, the net profit was Rs 11.23 crore on sales of Rs 457.56 crore against a net profit of Rs 32.88 crore on sales of Rs 546.04 crore. Total expenditure during the third quarter came down to Rs 106.62 crore against Rs 117.42 crore, mainly due to a reduction in transportation and handling charges, which were Rs 16.98 crore against Rs 22.40 crore. Interest charges were lower at Rs 15.95 crore when compared to Rs 19.48 crore. In the nine-month period ending December 31, 2002, total expenditure was down to Rs 352.53 crore against Rs 409.91 crore for the same period last year. The savings came through lower power and fuel cost at Rs 123.42 crore (Rs 130.59 crore), transportation and handling charges Rs 51.72 crore (Rs 82.11 crore) and other expenditure Rs 75.52 crore (Rs 91.02 crore). Interest charges were down to Rs 49.53 crore against Rs 59.38 crore earlier. The income from wind mill was lower by Rs two crore at Rs 14.02 crore against Rs 16.08 crore. When contacted, Mr A.V. Dharmakrishnan, Senior Vice-President - Finance, said that with depressed prices, the company continued to focus on cost-cutting measures, with a tight control over costs right from excavating the raw material to delivering cement to the consumer. Realisation per tonne of cement had dropped by almost Rs 600 for the quarter under review when compared to a year earlier. He said that the company had entered into a long-term contract for imported coal because of which it had been able to cut down power and fuel cost during the nine-month period. Also, the company was using alternate fuels to further cut down costs under this head. For the third quarter of this financial year, Madras Cements produced 8.38 lakh tonnes of cement and sold 8.47 lakh tonnes against a production of 6.46 lakh tonnes and sale of 6.9 lakh tonnes for the same period last year.
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