Ramco Industries Limited - FIRST QUARTER RESULTS - Q1 FY 2013 - NET SALES UP 46.29% YoY; NET PROFIT UP 23% YoY

Ramco Industries Limited

FIRST QUARTER RESULTS

Q1 FY 2013

RAMCO INDUSTRIES LIMITED has released its Results for the first quarter ending June,2012. The High Lights are as Below :

Net Sales for Q1 FY 13 stands at Rs.268.86 Cr; up by 41.16% from Q4 FY 12 (Rs.190.47 Cr); and up by 46.29% from Q1 FY 12 (Rs.183.79 Cr).

Total Expenditure for Q1 FY 13 stands at Rs.237.66 Cr; up by 41.14% from Q4 FY 12 (Rs.168.39 Cr); and up by 43.17% from Q1 FY 12 (Rs.166.00 Cr).

Profit  before Interest, Dep. & Taxes for Q1 FY 13 stands at Rs.31.20 Cr; up by  41.3% from Q4 FY 12 (Rs.22.08 Cr); and up by  75.38% from Q1 FY 12 (Rs.17.79 Cr).

Net Profit  for Q1 FY 13 stands at Rs.22.12 Cr; down by  -11.48% from Q4 FY 12 (Rs.24.99 Cr); and up by  22.82% from Q1 FY 12 (Rs.18.01 Cr). Higher Expenses and Taxes have brought down NPT compared to previous Qtr. There is a Huge increase in cost of Materials compared to Q1 FY 12. Yet, there is good improvement in NPT YoY by 23%.

Diluted EPS, on a FV of Rs.1, for Q1 FY 13 stands at Rs.2.55; compared to Rs.2.88 for Q4 FY 12; and Rs.2.08 for Q1 FY 12. At this Rate, the annualized EPS could be around Rs.10.2. The current PE Ratio will therefore be 5.39.

52 week high/low price : 57.45/33.00;

Current MP :Rs.55

RESULTS TABLE ((IN Lakhs of Rs):

Ramco Ind	30-Jun-12	QoQ % dif	31-Mar-12	YoY % Dif	30-Jun-11
Net Sales	26886	41.16	19047	46.29	18379
Total Expenditure	23766	41.14	16839	43.17	16600
Profit  before Interest, Dep. & Taxes	3120	41.3	2208	75.38	1779
Net Profit	2212	-11.48	2499	22.82	1801
Diluted EPS	2.55	-11.46	2.88	22.6	2.08
Net Sales	26886	41.16	19047	46.29	18379
Cost of materials	13818	22.61	11270	41.8	9745
Employee benefits	1255	4.32	1203	25.75	998
Depreciation	823	0.73	817	3.13	798
Other expenses	6139	52.41	4028	60.88	3816
Total expenses	23766	41.14	16839	43.17	16600
Profit  before tax	2922	1.25	2886	28.67	2271
Tax Expenses	710	83.46	387	51.06	470
Net Profit	2212	-11.48	2499	22.82	1801
Face Value (Rs )	1	0	1	0	1
Paid-up Equity	867	0	867	0	867
Diluted EPS	2.55	-11.46	2.88	22.6	2.08
Public Shareholding (%)	46.08	-0.37	46.25	-3.9	47.95

SOME DETAILS

FROM

ANNUAL REPORT 2010-11

(a) Fibre Cement (FC) Sheets :

Considering the prevailing market condition, production of Fibre Cement (F.C) Sheets during the year 2010-11 was regulated with an intent to avoid stock build-up. Hence the actual production was lower by 16,514 M.T when compared to the previous year. However, Sales improved by 3% to 4,80,333 M.T. Turnover for F.C Sheets was marginally higher at Rs. 37,583 Lakhs during the Financial Year under review as against Rs. 37,441 Lakhs in the previous year.

The new project for manufacture of F.C Products at Gangaikondan, Tirunelveli District, Tamil Nadu, with an Installed Capacity of 1,20,000 M.T commenced Commercial Production in July 2010 and the F.C Sheets produced from this new Plant are well received in the markets catering to the southern belt.

Further, implementation of another New Plant for manufacture of F.C. Products at Bihiya, Bihar, had also been completed and the Commercial Production had commenced on 2 nd  May, 2011. This Plant too has an Installed Capacity of 1,20,000 M.T and the Cost of the Project is about Rs. 3500 Lakhs. This Project enjoys various Tax benefits/Incentives from Bihar Government like 80% reimbursement of VAT deposited for 10 years up to a maximum of 300% of Capital invested in the Project etc.

(b) Fibre Cement Pressure Pipes :

In the Pressure Pipes Division, an amount of Rs.150 Lakhs had been received as the Minimum Licence Fee during the year under review from M/s. Kanoria Sugar and General Manufacturing Company Limited, the Licencee. The revenue from F.C. Pressure Pipes Division remained the same as the previous year since the production by the Licencee was affected due to the slow-down in infrastructural Activities.

(c) Calcium Silicate Boards (CSBs):

During 2010-11, quantitative Production and Sale of CSBs were higher when compared to the previous year as indicated above. The Turnover for the year was at Rs. 3,184 Lakhs as against Rs. 2,561 Lakhs during the previous year. CSB Division had also registered considerable increase in Profitability during the year under review.

(d) Cement Clinker Grinding (CCG) Plant at Kharagpur, W.B:

The Unit recorded continuous improvement in its performance during the year under review.  The Plant had produced 1,15,727 M.T of Cement during the year under review as against 1,05,320 M.T of Cement during the previous year, registering almost 10% growth.

Similarly, Sale of Cement also increased from 1,05,534 M.T during the last year to 1,15,355 M.T during 2010-11. Profitability of this Unit had also improved during the year ended 31.03.2011.

B. WIND MILLS :

During the Financial Year 2010-11, no new Wind Mill was commissioned and hence the total number of Wind Mills stands at the same 14. Position regarding Wind Mills was as follows :

Total Capacity Installed : 16.40 MW

Total Units generated : 326 Lakh Units (P.Y: 369 Lakh Units)

Income earned : Rs. 1,185 Lakhs (P.Y:  Rs. 1,211 Lakhs)

(by generation/sale of power)

Units generated and Income earned were slightly lower during the year under review, in tune with the weather / wind conditions.

C. COTTON YARN DIVISION-SRI RAMCO SPINNERS:

Production and Sales :

During the year 2010-11, the Unit had produced 31.12 Lakh Kgs. of Cotton Yarn as compared to 33.24 Lakh Kgs. produced during the previous year. The Unit had registered its sale of Yarn at 30.33 Lakh Kgs during the year under review as against 33.66 Lakh Kgs during 2009-10.

With the increase in Yarn Prices, Turnover for the year was considerably higher at Rs.10,345 Lakhs compared to Rs. 7,310 Lakhs in the previous year and Profitability also improved substantially.

However, Current Year working may not be encouraging as there is a glut in Yarn Market throughout India. Prices of Yarn has come down and practically no enquiries. Hope at the end of the year, the Division will be able to show good results as we have good Corporate buyers as our Customers.

D. OVERSEAS OPERATIONS - SRI RAMCO LANKA (PRIVATE) LIMITED, SRI LANKA:

Performance of the Company’s Wholly Owned Sri Lankan Subsidiary during the year under review, recorded substantial improvements in terms of Production, Sales, Turnover and Profitability. The production at the FC Sheet Plant of the Subsidiary,was 1,06,801 M.T. during the year ended 31.03.2011 as against 80,660 M.T. during the corresponding previous year. The Subsidiary sold 1,08,609 M.T. during 2010-11 as compared to 81,308 M.T. during 2009-10. The Net Sales were SLR.25,492 Lakhs (INR.10,365 Lakhs) as against SLR 18,137 Lakhs (INR 7,481 Lakhs) during the corresponding previous year.

Your Directors have pleasure to inform that a new Company by name M/s. Sri Ramco Roofings Lanka Private Limited (SRRLPL) has been incorporated in Sri Lanka as a subsidiary of M/s. Sri Ramco Lanka (Private) Limited (SRLPL) on 9th November 2010.

Since SRLPL itself is a Wholly Owned Subsidiary of M/s. Ramco Industries Limited (RIL), SRRLPL will also be another Subsidiary of RIL.  SRRLPL has taken up the setting up of a new Unit to manufacture Fibre Cement Products with an annual capacity of 1,20,000 MT at Pallegodowatta Industrial Estate, Mathugama in the District of Kalutara in Sri Lanka and the Unit is expected to be commissioned during the Current F.Y 2011-12. This Company will enjoy tax and other benefits from the Government of Sri Lanka.

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