The Ramco Cements (RAMCOCEM) Q4 01/02 earnings summary

Executive summary

• FY 2001-02 revenue rose to ₹709.37 crore from ₹620.83 crore; operating profit before interest, depreciation and tax was ₹180.31 crore, while profit after tax fell to ₹26.86 crore from ₹48.40 crore.

• Lower cement prices and higher interest and depreciation weighed on earnings; sales volume growth and the Alathiyur expansion supported revenue.

Financial highlights

• Revenue, net of excise and sales tax, was ₹709.37 crore versus ₹620.83 crore; cement sales volume rose to 32.64 lakh tonnes from 27.19 lakh tonnes.

• Operating profit before interest, depreciation and tax was ₹180.31 crore versus ₹178.18 crore; PBT was ₹41.86 crore versus ₹60.04 crore.

• PAT was ₹26.86 crore versus ₹48.40 crore; current tax provision was ₹3.20 crore and deferred tax provision ₹11.80 crore.

• Adjusted EPS was ₹212.19 versus ₹366.53, after adjusting PAT for donations and prior-period and extraordinary items.

Outlook and guidance

• FY 2002-03 cement demand was expected to remain sluggish amid economic slowdown, added industry capacity and margin pressure; cost reduction and blended cement marketing were strategic priorities.

• The Sriperumbudur dry mortar plant, producing render, skimcoat and dry concrete, was expected to be commissioned in August 2002.

• Changes to Tamil Nadu sales tax introduced price-based rates and multipoint taxation; first-sale tax rates could rise to 24% for cement above specified bag-price thresholds.