Madras Cements Ltd has posted a net profit of Rs 78.85 crore for the quarter ended June 30, a 4.3 times jump over the Rs 18.06 crore reported in the corresponding period last year. Sales during the period under review increased 55 per cent.
The net profit for the first quarter is only marginally lower than the profit of Rs 79.02 crore recorded during the whole of 2005-06.
Company officials attributed this performance to a better product mix and higher realisation per tonne of cement. A growth in the demand for cement in the southern States, the company’s major markets, combined with firm prices, especially in Andhra Pradesh and Karnataka, helped.
For the April-June period, Madras Cements reported sales of Rs 340.89 crore (Rs 219.87 crore). Total expenditure was up 21 per cent to Rs 204.52 crore from Rs 169.42 crore previously. Operating profit was up 2.7 times to Rs 139.27 crore from Rs 51.40 crore. Interest charges came down to Rs 4.20 crore from Rs 7.02 crore.