The Ramco Cements (RAMCOCEM) Q4 97/98 earnings summary

Executive summary

• FY98 sales and other income rose to ₹489.72 crore from ₹419.69 crore; PBIDT increased to ₹156.74 crore from ₹140.00 crore, while profit after tax fell to ₹33.10 crore from ₹77.74 crore.

• Alathiyur’s first-year contribution supported operating profit, but higher interest and depreciation and a steep Q4 selling-price decline reduced net profit.

Financial highlights

• Net turnover, excluding Central Excise and Sales Tax, increased to ₹475.28 crore from ₹404.07 crore.

• Profit before tax declined to ₹36.97 crore from ₹77.74 crore; profit after tax was ₹33.10 crore versus ₹77.74 crore.

• Interest and finance charges rose to ₹77.78 crore from ₹31.26 crore; depreciation increased to ₹41.99 crore from ₹31.00 crore.

• Directors recommended a 55% dividend on equity capital, subject to Financial Institution and bank approval.

Outlook and guidance

• FY99 expected to benefit from a full year of Alathiyur production and increased output.

• Cement demand was expected to gain from Central Budget 1998-99 measures supporting infrastructure and housing.

• Ready-mix concrete plant near Chennai was expected to be commissioned by September 1998; preliminary erection work had begun.

• Export plans targeted 50,000 tonnes of cement and clinker in FY99, with market development in Sri Lanka, Bangladesh, Burma and the Maldives.