The Ramco Cements (RAMCOCEM) Q4 98/99 earnings summary

Executive summary

• FY1998-99 turnover, net of excise and sales tax, rose to Rs. 506.53 crore from Rs. 475.28 crore; PAT increased to Rs. 39.92 crore from Rs. 33.10 crore.

• PBIDT edged up to Rs. 157.62 crore from Rs. 156.74 crore despite higher power tariffs and railway freight, supported by efficiency, energy conservation and cost-control measures.

Financial highlights

• Revenue including windfarm power and other income was Rs. 523.71 crore, versus Rs. 489.72 crore; PBT was Rs. 43.62 crore versus Rs. 36.97 crore.

• Interest and finance charges declined to Rs. 70.51 crore from Rs. 77.78 crore; depreciation rose to Rs. 43.48 crore from Rs. 41.99 crore.

• PAT rose to Rs. 39.92 crore from Rs. 33.11 crore; current-year tax provision of Rs. 3.70 crore was under MAT.

• Proposed dividend was 55% on equity capital, subject to Financial Institutions’ and banks’ approval; dividend and tax appropriation totaled Rs. 7.38 crore.

Outlook and guidance

• FY1999-2000 output was expected to be sustained or improved across all three units, with generator sets providing power backup.

• Cement demand was expected to benefit from Central Budget support for infrastructure and housing; cost control remained a priority.

• Jayanthipuram slag-grinding project was scheduled for March 2000 commissioning, increasing annual capacity from 11 lakh to 16 lakh tonnes.

• Alathiyur capacity was planned to increase by 2 lakh tonnes by July 1999 through equipment upgrades.