MADRAS CEMENTS LIMITED - FIRST QUARTER RESULTS - Q1 FY 2012 - Net Sales Up 29.46% YoY; Net Profit Up 25.14% YoY;

MADRAS CEMENTS LIMITED

FIRST QUARTER RESULTS - Q1 FY 2012

MADRAS CEMENTS LIMITED has declared good results for the first quarter ending June,2012. The High Lights are as below :

Net Sales stands at Rs.989.28 Cr for Q1 FY 13;  Up by 8.49% from Q4 FY 12 (Rs.911.87 Cr); and up by 29.46% from Q1 FY 12 (Rs.764.18 Cr). The Sales are impressive.

Total Expenditure stands at Rs.760.69 Cr for Q1 FY 13;  down by -2.25% from Q4 FY 12 (Rs.778.22 Cr); and up by 30.26% from Q1 FY 12 (Rs.583.98 Cr).

Profit before Interest, Dep. & Taxes stands at Rs.228.59 Cr for Q1 FY 13;  Up by  71.04% from Q4 FY 12 (Rs.133.65 Cr); and up by 26.85% from Q1 FY 12 (Rs.180.20 Cr).

Net Profit stands at Rs.123.01 Cr for Q1 FY 13;  Up by 24.14% from Q4 FY 12 (Rs.99.09 Cr); and up by 25.14% from Q1 FY 12 (Rs.98.30 Cr). The Net Profit Growth in percentage terms is quite impressive – both QoQ and YoY.

Diluted EPS on a Face Value of Rs.1 - stand at Rs.5 for Q1 FY 13; Rs.4 for Q4 FY 12; and Rs.4 for Q1 FY 12. FY 12 total EPS was Rs.16. Thus EPS growth is very good. Madras Cements is one of the more efficient manufacturers of cement Industry. The annualized EPS could be around Rs.20.

52 week high/low price : 182.00/80.15; and Current MP is Rs.173.15. The PE Ratio comes to around 8.66

The Competition Commission of India has imposed a Penalty of Rs.258.63 Cr on the company – for alleged Cartelisation with select Cement Manufacturers. The company proposes to appeal against the Order – and hence no Provision is made for this amount.

ABOUT THE COMPANY :

Madras Cements Ltd is the flagship company of the Ramco Group, a well-known business group of South India. It is headquartered at Chennai. The main product of the company is Portland cement, manufactured in five state-of-the art production facilities spread over South India, with a current total production capacity of 13.0 MTPA. The company is the fifth largest cement producer in the country.  is the most popular cement brand in South India. The company also produces Ready Mix Concrete and Dry Mortar products, and operates one of the largest wind farms in the country.

RESULTS TABLE : 

The detailed Results table indicating Q1 FY 13; Q4 FY 12 and Q1 FY 12 Numbers and QoQ % dif; and YoY % dif – under various heads of revenue and expenditure etc - can be seen below :

Madras Cements (Lakhs Rs)	30-Jun-12	QoQ % Dif	31-Mar-12	YoY % Dif	30-Jun-11
Net Sales	98928	8.49	91187	29.46	76418
Total Expenditure	76069	-2.25	77822	30.26	58398
Profit before Interest, Dep. & Taxes	22859	71.04	13365	26.85	18020
Net Profit	12301	24.14	9909	25.14	9830
Diluted EPS	5	25	4	25	4
Net Sales	98928	8.49	91187	29.46	76418
Cost of materials	35548	6.46	33390	37.56	25842
Employee benefits	4494	3	4363	8.08	4158
Depreciation	7812	18.54	6590	21.78	6415
Other expenses	29641	-7.67	32105	50.39	19710
Total expenses	76069	-2.25	77822	30.26	58398
Profit before tax	18209	35.75	13414	31.54	13843
Tax Expenses	5908	69.04	3495	47.22	4013
Net Profit	12301	24.14	9909	25.14	9830
Face Value of Share (inRs )	1	0	1	0	1
Paid-up Equity	2380	0	2380	0	2380
Diluted EPS	5	25	4	25	4
Public Shareholding (%)	58	0	58	0	58

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MADRAS CEMENTS = QTRLY RESULTS FOR Q3 FY 2012 = 3rd Q/E DEC, 2011 = NET SALES UP 15.42%YoY; NET PROFIT UP 147%YoY

Madras Cements Limited

NSE Symbol        MADRASCEM

Madras Cements has produced improved results in Q/E Dec,2011 over the corresponding quarter of Dec,2010 – but, the same falls below the preceding 2 Qtrs (Q2 and Q1, FY 2011).

Net Sales stands at Rs.741.04 Cr in Q3 FY 12 –down by  -9.52% from Q2 FY 12; down by -3.03% from Q1 FY 12 ; but up by 15.42% from Q3 FY 11.

Raw Materials stands at Rs.280.17 Cr – down by -5.18% from Q2 Fy 12; up by 8.42% from Q1 FY 12; but down by -0.89% from Q3 FY 11.

Other Expenditure  stands at Rs.        235.24 cr – up by 4.21% in Q2 FY 12; Up by 19.35% from Q1 FY 12;  and up by 13.71% from Q3 FY 11.

Total Expenditure stands at Rs.594.92 cr – down by  -3.16% from Q2 FY 12; up by 1.87% from Q1 FY 12; and up by  0.84% from Q3 FY 11. Expenditure has gone up more than proportionately in previous 2 qtrs – but less than proportionately from Sales in corresponding qtr of Q3 FY 11.

In last year 2010-11 annual report, the cost increases were analysed by the company for that year as follows :

COST

There has been steep escalations in input costs. The cost of imported and indigenous coal has increased, thereby increasing the cost of energy. The cost of flyash has also increased.

Road transportation cost has increased due to upward revision in the administered fuel cost. The Rail transportation cost has also increased, as the Railways have increased the basic freight structure, terminal charges and demurrage and wharfage penal charges, in addition to imposing various restrictions on movement of material through wagons.

The increase in the transportation cost and the general inflationary trends has led to overall increase in the cost of raw materials.

The depreciation cost has gone up due to the capacity additions implemented by the Company in the past years.

The increase in various statutory levies has also contributed to the increase in the cost.

Profit from Operations stands at  Rs.149.15 Cr  in Q3 FY 12 (current qtr)– down by -29.44% from Q2 FY 12; down by -19.04% from Q1 FY 12; but up by a huge  148.46% from Q3 FY 11.

Profit before tax stands at Rs.113.55 cr – down by  -33.9% from Q2  FY 12; down by -17.97% from Q1 FY 12; but up by a huge 311.26% from Q3 FY 11.

Tax expense is down at Rs.36.71 compared to all 3 qtrs.

Net Profit stands at Rs.76.84 Cr – down by -30.7% from Q2 FY 12; down by -21.83% from Q1 FY 12; but up by a good 146.92% from Q3 FY 11, the corresponding qtr.

Paid Up Equity isRs.23.80 Cr.

Basic EPS on a FV of Rs.1 stands at Rs.3      in Q3 FY 12; Rs.5 in Q2 FY 12; Rs.4in Q1 FY 12 and Rs.1in Q3 FY 11.

The annual EPS is likely to be around Rs.15.

Current Market price is Rs.129, while the  52 week high price is Rs.131.40 and the  52 week low price  is Rs.76.

The PE Ratio will be around  8.6

OTHER  DETAILS

The Annual Report for FY 2011 mentioned following details about Expansion Plans etc :

NEW PROJECTS

At R R Nagar, the Company is installing a Roll Press for increasing the cement grinding capacity from the present level of 210 TPH to 260 TPH at a cost of Rs.60 crores. The project is expected to be commissioned in March 2012.

At Ariyalur, as informed in the Annual Report for the year 2009 - 2010, to further augment the production capacity, the Company is in the process of establishing a second unit with a capacity of 2 MTPA. The project is slated to be commissioned in the month of August 2011. 

Consequently, the cement production capacity of the Company will go up from 10.49 MTPA to 12.49 MTPA.

At Salem Grinding Unit, the cement grinding capacity is proposed to be increased from the present level of 90 TPH to 230 TPH by installation of a Roll Press, at a cost of Rs.60 crores. The project is expected to be commissioned in December 2011.

POWER PLANTS

The Company continues to lay emphasis on captive source of energy, to cater to the electrical energy requirements of its production facilities.

• In the Annual Report for the year 2009 - 2010, it was informed about the Company's proposal to install a thermal power plant of 60 MW capacity, consisting of 3 x 20 MW at Ariyalur. Accordingly, 2 Nos. of 20 MW capacity thermal power plant have been commissioned in the months of November 2010 and February 2011. The balance 20 MW is expected to be commissioned in the month of December 2011.

• At R R Nagar, the Company is in the process of installing a thermal power plant of 25 MW capacity at a cost of Rs.110 crores. The project is expected to be commissioned in the month of August 2011.

• At Salem Grinding Unit, the Company is in the process of installing a Heavy Fuel Oil based power generator of 5 MW capacity, at a cost of Rs.23 crores. The project is expected to be commissioned in the month of June 2011.

RESULTS  TABLE

Madras Cement	31-Dec-11	30-Sep-11		%dif1		30-Jun-11		%dif2	30-Sep-10	%dif3
Net Sales	74104		81899		-9.52		76418	-3.03	64206	15.42
Other Operating Income	303		670		-54.78		403	-24.81	795	-61.89
Increase in SIT / WIP	-2491		-1234		101.9		2273	-209.6	842	-395.84
Raw Materials	28017		29549		-5.18		25842	8.42	28268	-0.89
Employees Cost	4308		4292		0.37		4158	3.61	3715	15.96
Depreciation	6134		6251		-1.87		6415	-4.38	5485	11.83
Other Expenditure	23524		22573		4.21		19710	19.35	20688	13.71
Total Expenditure	59492		61431		-3.16		58398	1.87	58998	0.84
Profit from Operations	14915		21138		-29.44		18423	-19.04	6003	148.46
Other Income	180		290		-37.93		180	0	258	-30.23
Interest	3740		4250		-12		4760	-21.43	3500	6.86
Profit before tax	11355		17178		-33.9		13843	-17.97	2761	311.26
Tax expense	3671		6052		-39.34		4013	-8.52	-351	-1145.87
Net Profit	7684		11088		-30.7		9830	-21.83	3112	146.92
Face Value (In Rs	1		1		0		1	0	1	0
Paid Up Equity	2380		2380		0		2380	0	2380	0
Basic EPS	3		5		-40		4	-25	1	200
Public holding (%)	58		58		0		58	0	58	0

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