India Cements, a dominant southern cement player, has posted a four fold increase in its net profit for the quarter ended June 2011.
Amongst all cement majors, India Cements has posted the best quarterly profits. The company's net profit stood at Rs 102 crore in April-June period compared with Rs 25 crore in the corresponding period last year. The company's net sales rose 20% to Rs 1,056.8 crore from Rs 880.6 crore.
Industry's analysts said that higher results is on the back of higher realisation during the quarter as prices of cement did not fall as much as it fell in other regions of the country. The total expenditure of India Cements grew 4.3% to Rs 877 crore from Rs 840.48 crore.
Earning per share rose to Rs 3.32 against Rs 0.81 a share last year in the same quarter.
The company said Foreign Currency Convertible Bonds (FCCB's) for $75 million were fully redeemed on May 12, the scheduled date.
The premium, including withholding tax paid on redemption of FCCB accounting for Rs 178 crore, has been set off against a similar amount drawn from Securities Premium Account in the profit and loss account, it said.
On the Bombay Stock Exchange, shares of the cement maker were trading 0.5% down at Rs 69.30 at 1305 hours.
