Chennai, Oct 25: Better realisations (especially in the second quarter), cost cutting and higher income from windmills have enabled Madras Cements to post a 6.5 per cent increase in its net profit at Rs 42.40 crore for the half year ended September 30, 1999.The company has posted a lower turnover of Rs 270.77 crore compared to Rs 280.28 crore in the first half of 1998-99. This is despite a higher cement despatches of 13.23 lakh tonnes (12.64 lakh tonnes) clearly reflecting a significant fall in per bag realisations vis-a-vis the previous year. The performance, to a large extent, has been shored up on account of significant increase in windmill income.
Operating profit was slightly lower at Rs 96.86 crore (Rs 97.59 crore). This has been mainly due to poor realisation in the first quarter which saw sharp decline in cement prices in Tamil Nadu, Kerala and Andhra Pradesh. The second quarter has witnessed a rebound in operating margins to 40 per cent from 31.5 per cent in the first quarter mainly on account of better realisations. Significant cost reduction measures initiated by the company helped it to partly offset low prices.
Interest costs were lower at Rs 31.55 crore (Rs 36.00 crore) as a result of better working capital management, accelerated repayment of loans and swapping of high cost debt with low cost ones.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.