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Madras Cements net down 93 pc

Our Bureau

CHENNAI, Oct. 29

MADRAS Cements Ltd has registered a 93 per cent drop in net profit for the quarter ending September 30, 2001. Sales increased 18 per cent over the corresponding period last year.

Company officials attributed the fall in profit to unremunerative cement prices, which fell by almost Rs 20 a bag during the period.

The company had reported a net profit of Rs 1.49 crore (Rs 20.40 crore) on sales of Rs 185.46 (Rs 156.95 crore). Other income was Rs 1.54 crore (Rs 36 lakh).

Total expenditure was 48 per cent higher at Rs 152.56 crore (Rs 103.18 crore). Raw material consumption was Rs 27.03 crore (Rs 24.07 crore), staff cost Rs 7.73 crore (Rs 8.16 crore), power and fuel Rs 49.92 crore (Rs 38.72 crore), transportation expenses Rs 25.44 crore (Rs 16.92 crore), selling and export expenses Rs 5.10 crore (Rs 2.05 crore) and other expenditure was Rs 33.85 crore (Rs 28.13 crore).

Interest was Rs 18.70 crore (Rs 16 crore) and depreciation Rs 14.25 crore (Rs 12.82 crore). Adjustment on account of deferred taxation will be considered in the year-end, according to the company.

For the half year ended September 30, 2001 the net profit was Rs 26.66 crore (Rs 24.85 crore) on sales of Rs 394.58 crore (Rs 301.23 crore).

Company officials said that power and fuel cost went up because the basic price of coal was higher by $6 per tonne, apart from the customs duty going up to 25 per cent.

For the second quarter of this year, Madras Cements produced 9.09 lakh tonnes of cement and 6.44 lakh tonnes of clinker. It despatched 8.91 lakh tonnes of cement. For the same period last year, the company produced 6.74 lakh tonnes of cement and 6.01 lak h tonnes of clinker, and despatched 6.48 lakh tonnes of cement.

Transportation costs went up because of the 24 per cent increase in volume and also because the company exported 25,000 tonnes of cement to Sri Lanka.

The officials said prices had now stabilised at about Rs 160-170 per bag.