Key Points from the concalldiscussion:

• The performance of the cement industry in general and the company in particular impacted in Q3FY16 due to unprecedented historic rainfall followed bysevere floods in Tamil Nadu.

• The poor demand for cement continued during the quarter which wasfurther severely impacted due to the monsoon in the south.According to the information published by the DIPP, the cementproduction on all India basis went up by hardly 2% in April toDecember 2015. However, southern India registered de-growth of4% in production and with substantial capacity overhang, theutilisation was sub 60% only in south. Given such a back drop of de-growthscenario and unfavourable weather impact, the performanceof the company can be considered to be satisfactory.

• Despite this havocand the consequent loss of sales in its primary market, the companycould turn out a reasonable performance with the significant reductionin variable cost and tight control on the operating parameters.

• Cement volume during the quarter was 19.01 lakh tonnes ascompared to 20.05 lakh tonnes in the same quarter of theprevious year.

• Clinker sales was lower at 0.36 lakh tonnes as compared to 1.02lakh tons resulting in overall sales lesser by 1.70 lakh tonnes ascompared to same quarter of the previous year.

• The impact of loss of sales in the primary markets of TamilNadu was made up partially by cutting the cost of productionand maintaining the prices at reasonable levels.

• The Company EBIDTA for the quarter was at Rs.154 croreclose to Rs.163 crore achieved in the previous year, despitethe volume loss.

• Interest charges were lower at Rs.89 crore against Rs.104crore and depreciation was at Rs.55 crore (Rs.66 crore)

• After considering forex loss, the Company profit before tax stood at Rs. 8 croreduring the Q3FY16 as against a loss of Rs.12 crore in the same quarter of the previous year.

• The Company consolidated debt stood at Rs 3220 crore as on 31^st December 2015.

• The cement capacity utilization stood at ~53% in Q3FY16.

• The Company expects Q4FY10 would be better than Q3FY16 which traditionally weak in southern region. Also the Company guides cement demand to grow ~4-5% in FY17.

• The Company hopes for revival of demand and next up-cycle in the coming months with the thrust being given by the bifurcated Andhra Pradesh and Telangana Governments to infrastructure and housing development.

• With the current GDP growth is largely driven by service sector, the Company hoped the renewed focus by Government in the ensuing Union Budget on increased public spending and the thrust on infrastructure development, smart cities, housing and Make in India are expected to boost industrial activity and revive real estate and construction activities.