The Ramco Cements (RAMCOCEM) Q4 03/04 earnings summary

Executive summary

• FY 2003-04 cement sales volume, including self-consumption, rose 6% to 37.86 lakh tonnes; turnover, net of excise and sales tax, reached ₹700 crore versus ₹630 crore.

• Profit after tax increased to ₹33.40 crore from ₹12.96 crore, supported by lower interest and production, marketing, and distribution costs.

Financial highlights

• PBIDT rose to ₹167.12 crore from ₹154.96 crore; profit before tax was ₹54.13 crore versus ₹23.33 crore.

• Net profit after tax was ₹33.40 crore versus ₹12.96 crore; the prior-year comparison included ₹14.37 lakh of prior-period and extraordinary items, versus ₹11.57 lakh in FY 2003-04.

• Interest and finance charges fell to ₹49.60 crore from ₹66.18 crore; turnover net of central excise and sales tax increased to ₹700 crore from ₹630 crore.

• Total dividend for FY 2003-04 was 75%: 25% interim and 50% recommended final, compared with 60% final in the prior year.

Outlook and guidance

• Cement demand was expected to grow further in FY 2004-05, with infrastructure projects anticipated to support capacity utilization across the industry.

• Export-market acceptance was expected to support higher export turnover; ongoing cost reduction in production and distribution was intended to protect and improve profitability.

• A 36 MW thermal power plant was being established at Alathiyur to meet the unit’s full power requirement through captive generation.