High prices in the second quarter coupled with effective cost cutting in the areas such as power, fuel consumption, distribution costs saw significant improvement in the company's operating margins which improved from 32.60 per cent to 36.21 per cent.

Quarter-to-quarter performance shows that the company has substantially improved its bottomline despite 23 per cent drop in sales volumes from 7.15 lakh tonne in the first quarter to 5.82 lakh tonne in the second quarter. This has been largely possible on account of high cement prices that was maintained in the south in the second quarter by the manufacturers.

For the period April-September 1998-99, the company has posted a turnover of Rs 269.54 crore (Rs 245.43 crore in the previous period). The operating profit for the period was Rs 97.59 crore (Rs 80.01 crore),while interest cost was lower at Rs 36 crore (Rs 37.83 crore) mainly on account of prepayments of certain high cost debts.

The gross profit was significantly higher at Rs 61.59 crore (Rs 42.18 crore) and the company has provided a depreciation of Rs 21.78 crore (Rs 20.49 crore).