The India Cements (INDIACEM) Q4 02/03 earnings summary

Executive summary

• FY03 cement operations faced sharply lower realizations and tight cash flows; the year ended with a standalone net loss of Rs.201.37 crore, versus Rs.0.81 crore in FY02.ocument-source]36ocument-source]

• Consolidated net loss was Rs.227.88 crore and consolidated revenue was Rs.1,037.95 crore; lenders approved a CDR package intended to ease liquidity pressure and reduce financing costs.ocument-source]62ocument-source]

Financial highlights

• Standalone income from operations was Rs.1,026.93 crore versus Rs.1,188.57 crore; total income fell to Rs.1,033.00 crore from Rs.1,313.25 crore.ocument-source]19ocument-source]

• Operating profit declined to Rs.32.72 crore from Rs.285.39 crore; FY02 other income included Rs.118.89 crore profit on sale of investments.ocument-source]20ocument-source]

• Loss before tax and extraordinary items was Rs.307.23 crore versus Rs.7.56 crore; an Rs.114.06 crore deferred tax asset reduced the FY03 net loss to Rs.201.37 crore.ocument-source]36ocument-source]

• Interest and other charges rose to Rs.258.54 crore from Rs.205.44 crore, mainly due to inadequate cash flows; depreciation fell to Rs.81.39 crore from Rs.87.47 crore.ocument-source]20ocument-source]

• Consolidated revenue was Rs.1,037.95 crore versus Rs.1,339.63 crore, and consolidated net loss was Rs.227.88 crore versus Rs.31.58 crore.ocument-source]62ocument-source]

Outlook and guidance

• Cement demand was expected to grow 9%–10%; management expected stable prices to improve with demand, while near-term southern market pricing remained subdued due to excess supply.ocument-source]10ocument-source]

• Current-year operations were expected to improve with additional working capital and reduced interest outflows; medium- and long-term prospects were linked to infrastructure and housing demand.ocument-source]18ocument-source]

• A return to FY01 price levels was projected to lift the topline by over Rs.300 crore, with most of the increase expected to flow to the bottom line.ocument-source]19ocument-source]