Madras Cements 3Q net profit falls

Madras Cements 3Q net profit falls
Published: 29 January 2009

India’s Madras Cements Ltd said Thursday its fiscal third-quarter net profit fell 43% from a year earlier, hurt by higher fuel, transportation and interest costs.

For the quarter ended Dec. 31, the company reported a net profit of INR627.3m, down from INR1.11bn in the same period a year earlier.

Net sales during the quarter rose 19% to INR6.09bn from INR5.12 billion in the corresponding year-earlier period.

During the third quarter, cement companies in India struggled with sluggish demand, high interest rates due to tight liquidity, and high coal prices.

Madras Cements’ third-quarter power and fuel expenses rose 70% to INR1.71bn, while transportation and handling charges rose 49% to INR1.01bn.