Friday, May 21, 2010
Shree Cements Limited, Q4 MINUS PROFITS; WATCH NEXT QUARTER
Shree Cements Limited
FT 10 VS FY 09(Annual)
Audited, Cumulative, Non-Consolidated
Net Sales Income has increased in FY 10 to Rs.3632 Crores from Rs. 2715 Crores, showing an increase of Rs.917 Crores or, 33.78 percent, which is quite a good progress.
Total Expenditure has also increased to Rs.2700 Crores from Rs.1970 Cr YOY, an increase of Rs.730 Crores or, 37.08 percent. The operating profit has therefore gone up by 22.35 percent YOY.
Net Profit has registered an increase to Rs.676 Cr from Rs.578 Cr YOY – ( or, +98 Cr, or, 16.98%.).
On a Face Value (in Rs.) of Rs. 10, the Basic EPS has risen considerably to Rs.194.07 from the last year EPS of Rs.165.91
A review of the quarterly results reveals that in Q4 .Net Sales has increased to Rs.944 Crores against Rs. 866 Cr in Q3; Rs.899.62 Cr in Q2; Rs.922 Cr in Q1 (and Rs.806 cr in Q4 of last year)
Total Expenditure has gone up more steeply to Rs. 897 Cr in Q4 ( against Rs. 625 Cr in Q3; Rs.591 Cr in Q2; Rs. 595 Cr in Q1 and Rs. 530 cr in Q4 of FY 09)
Therefore, Profit from Operations has registered a serious decline in Q4 to Rs.48 Cr ( against Rs. 241 cr in Q3; Rs. 318 Cr in Q2l; Rs.328 Cr in Q1 and Rs. 281 Cr in Q4 of FY 09)
Taking into account the exceptional Items of Rs. 54.87 Cr in Q4, the P B T is a minus figure of Rs. -53 cr in Q4 (against Rs. 244 cr in Q3; Rs. 322 cr in Q2; Rs. 356 cr in Q1 and Rs. 263 cr in Q4 of FY 09).
Net Profit has declined further to Rs. -71 Cr in Q4
Dividend declared is 80% now and another 50% earlier in FY 10 .
The Q4 basic EPS is therefore MINUS-20.49 (against Rs. 48 in Q3; 83 in Q2; 84 in Q1; and 68 in Q4 of FY 09). The Q4 is a huge surprise for the Market. While the company is making lot of expansions - whether it will book further huge depreciations in coming quarters needs to be seen.
It would mean - fresh investments may better wait for next quarter results.
NEWS ON SHREE CEMENT
(1)Shree Cement has commissioned a captive power plant and added clinker capacity during the 4th quarter. During the 4th quarter, it had commissioned a 1.20 MTPA clinker unit in Rajasthan, a 1.80 MTPA clinker unit in Uttarakhand, green power projects totalling 46 MW and a 50 MW thermal power plant in Rajasthan.
(2)“Now, what has happened is the depreciation has increased from (Rs)55 crore last year to (Rs)280 crore, because of commissioning. (of additional capacity),” Shree Cement MD, HM Bangur said.The Rs280 crore depreciation for the quarter is against Rs570 crore for the whole of last year, he said.
(3)“Our policy is written-down value on income tax basis, and if power plants are there, government of India allows us to charge very heavy depreciation in the first year itself. That has resulted in very high rates of incidence of depreciation,” he added. According to Bangur, if the company were to consider normal depreciation, the net profit would have been around Rs180 crore, rather than a loss of Rs71.37 crore.
(4)The company has also made a one-time provision of Rs44 crore as a precaution for a legal issue.
(5)“there is some capacity addition (plans). ...it is 12 million tonnes (as on FY10) and by the end of the year (FY11) it would be increased to 15 million tonnes,” Bangur said. The capacity addition would take place at its unit in Rajasthan and would be funded through internal accruals. The cement dispatches were at 10.26 million tonnes during the March quarter, up by 10%.There was no pricing pressure, as during the quarter prices were up 5% compared with a year ago, he said.
NON CONSOLIDATED ANNUAL
Description :: FY 10 IN LAKHS :: FY 09 ::Increase :: percent
Net Sales :: 363212 :: 271502 :: 91710 :: 33.78%
Other Operating Income :: 1112 :: 2555 :: -1444 :: -56.5%
Raw Materials :: 93426:: 85194:: 8231 :: 9.66%
Other ExpDR :: 104721 :: 79229 :: 25493 :: 32.18%
Total ExpenDR :: 270004 :: 196964:: 73040:: 37.08%
OPR.Profit :: 94320:: 77093:: 17227 :: 22.35%
Net Profit :: 67610 :: 57797 :: 9813 :: 16.98%
Dividend (%) :: 130 :: 50
Face Value (in Rs.) :: 10 :: 10
Paid-up Equity :: 3483.72 :: 3483.72
Reserves :: 179840 :: 117518:: 62322 :: 53.03%
Basic EPS :: 194.07 :: 165.91 :: 28.16 :: 16.97%
Quarterly results comparison
Q /E :: 03/10 :: 12/09 ::09/09 :: 06/09 :: 03/09
Net Sales:: 94403 :: 86603 :: 89962 :: 92245 :: 80620
Other Exp :: 30716 :: 24098 :: 25471 :: 25087 :: 23746
Total Exp :: 89711 :: 62548 :: 59125 :: 59470 :: 53033
OP. PRFT:: 4799 :: 24057 :: 31836 :: 32825 :: 28131
Exceptional Items :: 5487 :: 145 :: 291:: 420 :: 831
P B T :: -5291 :: 24362 :: 32154 :: 35567 :: 26271
Net Profit :: -7137 :: 16743 :: 28891 :: 29113 :: 23564
Dividend (%) 80 50 - - 100
Basic EPS :: -20.49 :: 48.06 :: 82.93 :: 83.57 :: 67.64
ANNOUNCEMENTS TO THE EXCHANGE
20-05-2010 Shree Cements Limited has informed the Exchange regarding the standalone Results for the quarter ended on 31-MAR-2010 as follows: Net Sales of Rs. 94403.09 lacs for quarter ending on 31-MAR-2010 against Rs. 80620.29 lacs for the quarter ending on 31-MAR-2009. Net Profit / (Loss) of Rs. (7137.18) lacs for the quarter ending on 31-MAR-2010 against Rs. 23563.65 lacs for the quarter ending on 31-MAR-2009.
20-05-2010 Shree Cements Limited has informed the Exchange regarding the standalone Results for the year ended on 31-MAR-2010 as follows: Net Sales of Rs. 363212.3 lacs for year ending on 31-MAR-2010 against Rs. 271502.02 lacs for the year ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 67610.03 lacs for the year ending on 31-MAR-2010 against Rs. 57796.94 lacs for the year ending on 31-MAR-2009.
20-05-2010 Shree Cements Limited has informed the Exchange that the Board of Directors at its Meeting held on May 20, 2010 have recommended final Dividend @ Rs. 8 per share for the financial year 2009-10.
16-03-2010 Shree Cements Ltd has informed the Exchange that: "The Company has commissioned its 1.80 MTPA Clinker Grinding Unit at Village Akbarpur-Oud, Tehsil Laksar in Haridwar District, Uttrakhand".
10-03-2010 Shree Cements Ltd has informed the Exchange that: "The Company has commissioned its 1.80 MTPA Clinker Grinding Unit at Village Udaipur Udasar, Tehsil Suratgarh in Sri Ganganagar District, Rajasthan".
21-01-2010 Shree Cements Ltd has informed the Exchange that the Board, at its meeting held on January 21, 2010 has declared Interim Dividend @ Rs. 5 per share for the financial year 2009-10.
21-01-2010 Shree Cements Ltd has informed the Exchange regarding the standalone Results for the quarter ended on 31-DEC-2009 as follows: Net Sales of Rs. 86602.54 lacs for quarter ending on 31-DEC-2009 against Rs. 66530.96 lacs for the quarter ending on 31-DEC-2008. Net Profit / (Loss) of Rs. 16743.14 lacs for the quarter ending on 31-DEC-2009 against Rs. 12394.02 lacs for the quarter ending on 31-DEC-2008.
28-04-2009 Shree Cements Ltd has informed the Exchange that the Board, at its meeting held on April 28, 2009 has declared Interim Dividend @ Rs.5 per share and also recommend to members of the Company final dividend @ Rs.5 per share for the financial year 2008-09. -
25-03-2009 Shree Cements Ltd has informed the Exchange that Company on March 24, 2009 has commissioned its Clinker Manufacturing Unit (Unit VII) of 1 Million tonnes Per Annum capacity at Bangur City, Ras in Pali Distt of Rajasthan. Company has set a world record by commissioning this unit in a period of 367 days (12 months) against the industry standard of 630 days (21 months).