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Chennai, June 30 The India Cements Ltd has reported a 33 per cent rise in net profit for the year ended March 30, 2008, over the previous year.

Mr N. Srinivasan, Vice-Chairman and Managing Director, The India Cements Ltd, told reporters that the continued buoyancy in demand, higher realisation, efficiency and increased output of blended cement contributed to the company’s performance in 2007-08.

Realisation had increased to Rs 3,385 a tonne (net of excise) against Rs 2,672 previously. Operating performance was also higher with an EBIDTA of 37 per cent (earnings before interest, depreciation and amortisation) against 33 per cent in 2006-07.

Production was 9.2 million tonnes against 7.5 million tonnes in the previous year. Of this blended cement output had been increased to 66 per cent (54 per cent).

On the dip in the net profit in the fourth quarter, Mr Srinivasan said that the results were not comparable as the previous quarter included the nine-month financials of Visaka Cement, which has since been merged with India Cements. Profit before tax was Rs 234 crore (Rs 181 crore).

Demand for cement continues to grow at about 10 per cent boding well for the current year’s performance when prices are expected to remain stable.

The company hopes to conclude the current year with a production of about 11 million tonnes.

It was ‘business as usual’ despite the double-digit inflation, Mr Srinivasan said. Projects and investments were happening across sectors and these supported the demand for cement.

The company’s expansion programme involving a capital expenditure of over Rs 2,000 crore was going as planned. This would see India Cements’ capacity double to 18 million tonnes a year by March 2010.

India Cements’ Rs 10 shares were down 6.6 per cent on the NSE today at Rs 137.15, against the previous close of Rs 146.85.

More Stories on : Financial Performance | Cement

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