The India Cements (INDIACEM) Q4 99/00 earnings summary

Executive summary

• FY ended 31 Mar 2000: sales and other income rose to Rs 141,965.83 lakh from Rs 139,183.52 lakh, while profit after tax fell to Rs 4,531.20 lakh from Rs 8,389 lakh.

• Higher cement volumes and plant efficiency supported performance amid weaker realisations, higher interest costs and volatile prices.

Financial highlights

• Profit before tax was Rs 4,731.20 lakh versus Rs 8,704 lakh; interest and other charges increased to Rs 17,041.42 lakh from Rs 15,183.54 lakh.

• Cement sales were Rs 139,908.69 lakh versus Rs 132,772.22 lakh; wind power income rose to Rs 601.18 lakh from Rs 538.18 lakh.

• Operating cash flow was Rs 3,712.15 lakh versus Rs 8,573.53 lakh; investing cash outflow was Rs 36,363.59 lakh, including advances for cement acquisitions and projects.

Outlook and guidance

• Apr–Jun 2000 cement production rose 5% YoY to 16.45 lakh tonnes and sales rose 9% to 16.65 lakh tonnes; prices remained weak, with recovery beginning in June.

• Chilamakur’s upgrade was expected to add 0.30 million tonnes of annual production after stabilisation in H1 FY01; low-cost Dalavoi and Yerraguntla expansions were underway.

• A 15 MW gas power plant was targeted for completion within 18 months; additional energy and production efficiencies were expected from ongoing upgrades.