India Cements net grows 417%

BS 200 SCORECARD

India Cements has reported a growth of 417 per cent in net profit at Rs 139.81 crore for the fourth quarter ended March 31, 2007, as compared with Rs 27.03 crore in the corresponding quarter of the previous year.

The net sales rose 35 per cent to Rs 672.90 crore from Rs 498.95 crore. The operating profit grew to Rs 192.77 crore as compared with Rs 78.17 crore in the corresponding quarter a year ago. The operating margin for the fourth quarter was 33.5 per cent.

The company's record performance was due to cost abatement measures and an improvement in sales volume and prices. With a tight leash on costs, most of the top line increase could be carried through to the bottom line, according to a company statement.

For the year ended March 31, 2007, the company posted a record net profit of Rs 449.50 crore compared with Rs 45.31 crore for the year ended March 31, 2006. The net sales grew by 29 per cent to Rs 2,367.60 crore from Rs 1,829.44 crore last year. The operating profit was up 150 per cent to Rs 671.89 crore as compared with Rs 268.21 crore in the previous year.

The gross price realisation for the year was Rs 3,130 a tonne of cement as compared with Rs 2,460 a tonne in the previous year. The operating margin for 2006-07 stood at 32.6 per cent as against 17.3 per cent in the previous year.

The demand for cement in the country is growing at around 10 per cent during the current year. The last year had seen double-digit growth. The growth in demand has been even better in southern India, registering a 13 per cent increase over the 17.75 per cent rise during the previous year.

The cement prices have rebounded smartly during the last year, riding on the demand-supply equation. With the limited capacity expected for some time, the industry has been working towards maximising its capacity and this is likely to continue for a year or two, till fresh capacity materialises, the statement added.