The Ramco Cements (RAMCOCEM) Q4 99/00 earnings summary

Executive summary

• FY2000 PAT rose to Rs.40.22 crore from Rs.39.92 crore; lower cement turnover and PBIDT were offset by savings in interest and other costs.

• Capacity additions, blended cement growth and new Ready Mix Concrete operations expanded the business; FY2001 demand remained uncertain amid drought and competitive pricing.

Financial highlights

• Net cement turnover, excluding Central Excise and Sales Tax, was Rs.516.17 crore vs Rs.529.03 crore; total P&L income was Rs.519.07 crore vs Rs.523.71 crore.

• PBIDT was Rs.152.96 crore vs Rs.157.62 crore; PBT rose to Rs.45.47 crore from Rs.43.62 crore and PAT to Rs.40.22 crore from Rs.39.92 crore.

• Interest expense fell to Rs.61.12 crore from Rs.70.51 crore; depreciation increased to Rs.46.37 crore from Rs.43.48 crore.

• Proposed final dividend was Rs.55/share, or 55%, matching the interim dividend paid; dividend distribution tax was Rs.73.17 lakh.

Outlook and guidance

• FY2001 production expected to rise sharply following Jayanthipuram slag grinding commissioning and Alathiyur capacity expansion.

• Drought across many states had weakened cement demand; infrastructure and housing policies were expected to support demand, while prices were expected to remain competitive.

• Cost reduction was a priority to protect profitability; the 1-million-tonne Alathiyur unit was targeted for commissioning in Q1 2001.