Chennai, Oct 30: Southern cement major, India Cements Ltd, has posted a 45 per cent drop in net profit to Rs 25.67 crore for the first half of the current fiscal 1998-99, against Rs 47.08 crore in the corresponding period last year. However, turnover rose 6 per cent to Rs 504.02 crore (Rs 474.78 crore) on account of a 14 per cent increase in volumes from 15.17 lakh tonne to 17.34 lakh tonnes.Income from shipping business was affected due to adverse freight rates on one hand and dry docking of two vessels.
Operating margins were slightly better at 23 per cent (22.44 per cent) basically due to better price realisation in the second quarter.
Interest charges shot up 81 per cent to Rs 58.87 crore (Rs 32.54 crore). Analysts attribute this sharp increase to Raasi acquisition related borrowings. A depreciation of Rs 31.69 crore (Rs 26.91 crore) has been provided.
The company has implemented a voluntary retirement scheme whereby 961 employees have opted out of the Sankari and Shankar Nagar plants. The twooldest plants now have a combined strength of 1,822 compared to 4,601 when the present management took over the company in 1989. This is expected to result in substantial savings in its wage bill in the coming years.
India Cements' Visaka Cement Industry Ltd in Andhra Pradesh has commenced clinkerisation from October 17. Cement production is expected to start from November.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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