The Hindu Business Line : Madras Cements net jumps 34% on cost control, realisations

Chennai, Oct. 23 Improved realisations and control on costs have contributed to a 34 per cent jump in net profit for Madras Cements in the second quarter ended September 30, 2007.

The board has approved an interim dividend of Rs 10 (100 per cent; face value of Rs 10 a share) an equity share for 2007-08.

Continued buoyancy in cement prices and demand growth bode good for the company, say company officials.

Cement sales during the quarter was six per cent lower at 13.68 lakh tonnes during the quarter as compared to the corresponding period in the previous year when it was 14.55 lakh tonnes. There was a dip in production by about 80,000 tonnes due to maintenance shutdown of some units.

Power and fuel costs have shown a stiff increase to Rs 91.18 crore (Rs 75.55 crore). While the costs are a concern, the company’s programme of doubling its wind generation capacity to over 120 MW by March 2008 would come in handy in tackling power costs, officials said.

Capex programme

The company is in the process of a Rs 1,900-crore capital expenditure programme which would take its cement production capacity to about 10 million tonnes by the middle of the next financial year from the present six million tonnes.

On the Exchange on Tuesday, Madras Cements Ltd shares closed at Rs 4,017.95 a share, a 3.72 per cent growth over the previous close of Rs 3,873.75.

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