The quantity of cement production and sales volumes have increased during the quarter, but the significant drop in price realization has impacted both turnover and profit. Sales dropped by 15% to Rs. 842.84 crore during the quarter and by 12% to Rs. 1725.63 crore during the half year ended September 2010. Income from operations included income from franchise of Indian Premier League and Ship carter freight earnings. The income from shipping activity is less than 10% of the turnover, it is not considered as a reportable segment.
OPM fell from 30.5% to 3.6% during the quarter and from 30.5% to 7.7% during the half year period. PAT fell to negative compared to positive for the quarter and the half year period.
Quarter ended September 2010
The company' sales fell by 15% to Rs. 842.84 crore. OPM fell by 2690 basis points to 3.6% from 30.5%. Materials consumed increased by 16% to Rs. 137.55 crore, which is 4.5% more as a % of adjusted sales. Transport and handling costs increased by 28% to Rs.186.1 crore, which being 7.5% more as a % of adjusted sales. Power and fuel increased by 7% to Rs. 261.7 crore and other expenses increased by 31% to Rs. 163.51 crore, each growing 6.7% and 6.9% more as a % of adjusted sales.
Other income was at Rs. 63 lakh compared to none. Interest expense declined by 25% to Rs.27.96 crore, while depreciation increased by 7% to Rs. 60.96 crore. PBT before forex translation and EO was negative at Rs. 57.98 crore compared to positive Rs. 208.62 crore. There was a forex translation profit of Rs. 11.25 crore from a loss of Rs. 1.27 crore. PBT after forex translation stood at negative Rs. 46.73 crore against positive Rs. 207.35 crore. Effective tax fell by 600 basis points to 28%. PAT was at negative Rs. 33.63 crore compared to positive Rs. 136.94 crore.
Half year ended September 2010
The company' sales declined by 12% to Rs. 1725.63 crore. OPM declined by 2280 basis points to 7.7%. Material consumed increased by 19% to Rs. 276.25 crore and transport and handling costs increased by 34% to Rs. 370 crore, each being 4.2% and 7.3% more as a % of adjusted sales respectively. Power and fuel expenses grew by 10% to Rs. 536.8 crore, growing 6.2% more as a % of adjusted sales and other expenses also grew by 9% to Rs. 305.93 crore, which being 3.3% more as a % of adjusted sales. Employee cost increased by 11% to Rs. 123.24 crore.
Other income was at Rs. 27 crore compared to none. Interest expense declined by 24% toRs. 57.71 crore, while depreciation grew by 6% to Rs. 120.81 crore. PBT before EO and forex translation was negative Rs. 19.05 crore compared to positive Rs. 406.18 crore. There was a forex translation loss of Rs. 30 lakh from profit of Rs. 19.73 crore. PBT after forex translation stood at negative Rs19.35 crore compared to positive Rs. 425.91 crore. Effective tax rate for the period grew to 55% from 34%. PAT fell to negative Rs. 8.65 crore from positive Rs. 281.22 crore.
The plant with annual capacity of 15 lakh tonnes at Banswara, Rajasthan of the company has commenced operations.
Foreign exchange translation represents notional exchange gain on account of outstanding Foreign Currency Convertible Bonds, which would mature for redemption in May 2011.
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