Shree Cement (SHREECEM) Q4 02/03 earnings summary

Executive summary

• FY 2002-03 turnover was Rs 582.43 cr and profit after tax Rs 6.70 cr; production reached 2.75 million tonnes against 2.6 million tonnes installed capacity. FY 2001-02 covered nine months, limiting comparisons.

• Operational gains came from higher output, pet-coke fuel substitution, mining and logistics efficiencies, and stronger retail and blended-cement sales.

Financial highlights

• Turnover Rs 582.43 cr versus Rs 397.22 cr in the prior nine-month period; reported increase 10%.

• Profit after tax Rs 6.70 cr versus Rs 1.47 cr; reported increase 456%, with periods of 12 months and nine months, respectively.

• Operating profit Rs 106.59 cr versus Rs 82.52 cr; operating margin 18.30% versus 20.78%.

• Cement production 2.747 million tonnes versus 1.806 million tonnes; FY 2001-02 was a nine-month period.

Outlook and guidance

• Production target 3 million tonnes in 2003-04, with a 10% output increase targeted without corresponding capex growth.

• A new 2 million tpa plant was planned by 2006, targeting 5 million tpa capacity, with potential debottlenecking to 6 million tpa.

• PPC mix target 50% in 2003-04 versus 27% in 2002-03; Red Oxide was expected to reach nearly 30% of total sales.

• The 36 MW captive power plant was expected to generate annual savings of Rs 25 cr; commercial generation began 16 April 2003.