ANALYSIS OF RESULTS

I Quarter – FY 2004

1. Operational Performance

All cement plants operated at good utilisation levels resulting in higher clinker production by 4% at 1.96 million tonnes as against 1.89 million tonnes in the corresponding quarter of the previous year. Similarly production of cement was higher by 4% at 2.15 million tonnes against 2.08 million tonnes.

Cement sales registered an increase of 5% to 2.24 million tonnes from 2.14 million tonnes in the corresponding quarter of the previous year. Domestic sales, were maintained at previous years level, whereas exports registered a good growth of 30%. The domestic sale was 1.85 million tonnes as against 1.84 million tonnes in the corresponding quarter of the previous year and the exports were at 0.39 million tonnes as against 0.30 million tonnes.

2. Other Income

Other Income during the quarter is Rs. 146 million as compared to Rs. 69 million in the corresponding quarter of the previous

3.Costs

Higher productivity has led to further lowering of costs whereby the direct cost of production per tonne of cement has reduced by about 5%.

4.Operating Margin

The PBIDT Margin during the quarter is 21% as against 22% in the corresponding quarter of the previous year. Despite a drop in the sales realisation by 5%, higher productivity and further lowering of power, fuel and interest cost restricted the decline in the margins. PBIDT is Rs. 800 million as against Rs. 846 million.

5. Interest

The Interest expenses during the current quarter has come down to Rs. 195 million as against Rs. 220 million in the corresponding quarter of the previous year on account of better management of interest

6. Profit after Tax

After providing for tax (including deferred tax) of Rs. 29 million (Rs. 63 million), Profit After Tax is Rs. 181 million as compared to Rs. 129 million.