The Ramco Cements (RAMCOCEM) Q4 00/01 earnings summary

Executive summary

• FY01 net sales and other income rose to ₹620.83 crore from ₹519.00 crore; PAT increased to ₹48.40 crore from ₹40.22 crore.

• Higher sales realization and a richer blended-cement mix supported profitability despite cement sales volumes remaining broadly stable.

Financial highlights

• Turnover, net of excise and sales tax, increased to ₹618.34 crore from ₹516.17 crore; cement sold was 27.19 lakh tonnes vs 26.82 lakh tonnes.

• PBIDT rose to ₹178.18 crore from ₹152.96 crore; PBT was ₹60.04 crore vs ₹45.47 crore, and PAT was ₹48.40 crore vs ₹40.22 crore.

• Interest and finance charges increased to ₹65.41 crore from ₹61.12 crore; depreciation rose to ₹52.73 crore from ₹46.37 crore.

• A 55% equity dividend was recommended; dividend payout was 15.15% in FY01.

Outlook and guidance

• FY02 plans included further Mathod modernization for ₹40 crore, targeting capacity of 3.4 lakh tonnes; total cement capacity was expected to reach 61 lakh tonnes by year-end.

• Dry Mortar products plant near Chennai, costing ₹15 crore, was expected to commission in Jan 2002; market development remained a condition for success.

• Management expected low-cost facilities, higher utilization and sales realization to support performance amid increased competition.