Shree Cement (SHREECEM) Q4 03/04 earnings summary

Executive summary

• FY2003-04 gross turnover rose 4.21% to Rs 606.93 crore; EBITDA increased 25.56% to Rs 133.84 crore and PAT rose 94.58% to Rs 13.04 crore.

• Cement production reached a record 2.841 million tonnes at 109% capacity utilisation; the 36 MW captive power plant drove major energy-cost savings.

• Higher blended-cement sales, led by Red Oxide, and cost controls supported profitability despite subdued demand and realizations for most of the year.

Financial highlights

• Gross turnover was Rs 606.93 crore versus Rs 582.43 crore in FY2002-03; total income was Rs 609.78 crore versus Rs 587.03 crore.

• EBITDA rose to Rs 133.84 crore from Rs 106.60 crore; PAT increased to Rs 13.04 crore from Rs 6.70 crore.

• Net sales were Rs 473.23 crore; profit before tax was Rs 21.71 crore, versus Rs 12.31 crore in FY2002-03.

• Cash profit was Rs 93.48 crore; cash earnings per share increased to Rs 26.83 from Rs 20.63.

Outlook and guidance

• A 1 million-tonne Ras plant was planned for commissioning in Q3 FY2004-05; expansion would lift cement capacity to nearly 4.5 million tonnes, with project cost estimated at Rs 300 crore.

• Northern India cement demand was projected to reach 29.69 million tonnes by 2006-07, with a potential regional supply deficit of up to 6 million tonnes.

• Planned split-grinding and fly-ash blending capacity aims to reduce freight costs and improve distribution; alternative fuels were targeted at up to 10% of fuel use in FY2004-05.