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Our Bureau

Chennai, May 29 Madras Cements has reported a 11 per cent drop in net profit for the year ended March 31, 2009, as compared with the previous year due to “the steep increase in the price of coal.”

The power cuts in Tamil Nadu also resulted in the company not being able to avail itself of the full benefits of its captive wind farms – consequently, it had to rely more on the costly power from gensets, according to a press release from the company.

In 2008-09, the company reported a net profit of Rs 364 crore (Rs 408 crore). The total income for the current fiscal was Rs 2,539 crore (Rs 2,020 crore).

However, the increase in cement production – 65.26 lakh tonnes (58.45 lakh tonnes) – and sale – 65.28 lakh tonnes (58.21 lakh tonnes) – along with better realisation has helped to bring down the impact of higher cost.

The Madras Cements’ board has approved payment of a final dividend of Re 1 a share of Re 1 (100 per cent) taking the total dividend for the year to Rs 2 a share.

The total production capacity has increased to 10 million tonnes a year with the additional capacity of 2 million tonnes commissioned at Ariyalur on March 6.

The production has stabilised and its contribution will be fully available from 2009-10. The company expects to commission a 1,600-tonne-a-day kiln at RR Nagar where the existing 1,200-tonne kiln is being scrapped.

Madras Cements, which is setting up three grinding units that would take its total production capacity to 11 million tonnes a year has started trial production at the unit in Kanchipuram District.

This 0.6-million-tonne-a-year unit will start commercial production in June.

The other units coming up in Salem, Tamil Nadu, and East Midnapore District, West Bengal, are to be commissioned in June and August.

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