ANALYSIS OF RESULTS

IInd Quarter FY 2004

 

 

1.                  Operational Performance

 

All cement plants operated at good utilisation levels resulting in higher clinker production by 2% at 2.33 million tonnes as against 2.30 million tonnes in the corresponding quarter of the previous year. Similarly production of cement was higher by 8% at 2.56 million tonnes against 2.37 million tonnes.

 

Cement sales registered an increase of 11% to 2.55 million tonnes from 2.30 million tonnes in the corresponding quarter of the previous year. Domestic sales and exports registered a good growth of 11%. The domestic sale was 2.1 million tonnes as against 1.90 million tonnes in the corresponding quarter of the previous year and the exports were at 0.44 million tonnes as against 0.39 million tonnes.

 

2. Other Income

 

Other Income during the quarter is Rs. 94.30 million as compared to Rs. 78.6 million in the corresponding quarter of the previous year.

 

3. Costs

 

Higher productivity has led to further lowering of power and fuel cost resulting in the direct cost of production being maintained at the same level despite increase in fuel costs.

 

4. Operating Margin (PBIDT Margin)

 

The PBIDT Margin during the quarter is 26% as against 33% in the corresponding quarter of the previous year on account of lower sales realisation. PBIDT is Rs. 1126 million as against Rs. 1404 million.

 

5. Interest

 

The Interest expenses during the current quarter has come down to Rs. 221.1 million as against Rs. 261.1 million in the corresponding quarter of the previous year on account of better management of interest costs.

 

6. Profit after Tax

 

After tax and exceptional items, Profit After Tax is Rs. 595.4 million as compared to Rs. 603.2 million.

 

7.                  Outlook for the current year

 

The heavy monsoon had impacted the construction activity in the country, which had resulted in a lower cement off-take and lower cement prices, which continued till November 2003.
 
Cement demand has started picking up from December 2003. On back of good demand, cement prices have started moving up from a very low level reached in September 2003.

 

It is expected that Road and House construction activity will accelerate in the coming months and the current upsurge in economic activity in the country would generate good demand for cement. The company expects the second half of the current financial year to be much better due to good cement demand and better prices.

 

8. Brief financials of our subsidiary and associate

 

Both these companies have performed well and have reported good results.

 

 

Rs. in Million

 

ACEL

ACRL

IIQ2004

IIQ2003

IIQ2004

IIQ2003

Sales:-

 

 

 

Quantity (mln. tonnes)

3.07

3.07

3.55

3.35

Value

703

760

651

 

638

PBIDT

168

211

166

 

152

Interest

31

46

96

 

100

Depreciation

63

63

68

 

63

Net Profit/(Loss) after tax

49

102

2

 

(11)

 

 

 

 

 

Net Operating Margin

 

24%

28%

25%

24%

 Press Release