The Hindu Business Line : Madras Cements net jumps to Rs 68 cr in Q3

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Chennai Jan. 30 Madras Cements Ltd has reported a seven-time jump in net profit of Rs 68.12 crore on net sales of Rs 390.99 crore for the quarter ended December 31, 2006.

During the corresponding period in the previous year the company reported a net profit of Rs 9.59 crore on net sales of Rs 242.65 crore.

Higher volumes and a healthy demand are the reasons for the performance, according to company officials.

A press release from the company said sales during the quarter increased by 27 per cent to 14.75 lakh tonnes (11.61 lakh tonnes). The company concentrated on markets with better price realisation. Cost reduction in all areas, particularly power, on account of full-fledged operations of the thermal plant at Alathiyur and the windmills, reduction in interest cost and higher productivity contributed to the performance.

Total expenditure was Rs 263.10 crore (Rs 201.04 crore) and interest Rs 8.47 crore (Rs 11.23 crore).

For the nine months ended December 31, 2006, the company has reported a net profit of Rs 237.04 crore (Rs 46.46 crore) on net sales of Rs 1,139.13 crore (Rs 708.61 crore).

Its nine months' performance exceeds that of the entire year's performance in 2005-06 when it reported a net profit of Rs 79.07 crore on net sales of Rs 1,008.45 crore.

Madras Cements has approved a second interim dividend of Rs 7.50 a share (75 per cent) of Rs 10 with the record date being February 5.