Mangalam Cement net up 26% for Dec 2007 quarter

Mangalam Cement net up 26% for Dec 2007 quarter
Published: 28 January 2008

Mangalam Cement reported 26.04% increase in net profit to Rs 257.45m for the quarter ended December 2007 as compared with Rs 204.26m in the corresponding quarter, last fiscal.

Net sales for the quarter rose 6.73% to Rs 1,192.56m as against Rs 1,117.34m in the same quarter, a year ago.

Total income for the quarter surged 7.82% to Rs 1,209.54m from Rs 1,121.84m in the corresponding quarter, a year ago.

The earnings per share (EPS) surged 26% to Rs 9.11 for the quarter ended December 2007.

Recent Developments

Mangalam Cement commissioned four wind mills of 0.6 MW capacity each at Jaisalmer during the quarter ended Dec. 31, 2007 and balance three wind mills of 1.25 MW capacity are expected to be commissioned by February, 2008.

The company increased its grinding capacity by 500,000tpa and increase in clinker capacity in Unit-I by 500tpd and in Unit-II by 250tpd, is expected to be commissioned by 1st quarter of next financial year.  
Conventionally, the cement price will spiral down beginning from the end of the second quarter. The Guangdong provincial government has recently announced that the inferior-quality cement plants with total annual capacity of 10Mt will be shut down this year, which is expected to enlarge the supply gap, following a shutdown of the capacity of 8.82Mt last year. 
The mainland authority has also announced that the cement plants focusing on the production of inferior-quality 32.5-type cement nationwide should stop operations beginning from June this year.