Key highlights

• The company net profit surged 65% to Rs.32.66 crore in Q4FY18. Company achieved 11% growth in its Net Sales to Rs.896.95 crore in Q4FY18 from Rs.806.72 crore in Q4FY17. EBIDTA were up by 30% to Rs.127.64 crore in Jan-Mar.18 from Rs.97.85 crore in Jan-Mar.17. After providing for interest and depreciation, PBT went up six times to Rs.33.75 crore in Jan-Mar. 18 from Rs.5.54 crore in Jan-Mar.17.

• The company overall the margins were impacted during the year because of the sharp increase in the fuel prices, especially pet coke and coal prices that shot up. The company has been facing increased diesel prices and all time high Pet coke prices. Company's profitability was also hit by Apex's court order in the last week of Oct.17 directing ban of Pet Coke consumption in three states Rajasthan, Haryana & UP. The ban was lifted in the last week of Jan.18 for Pet Coke consumption in Kiln, but the usage of Pet Coke in power Generation continues to remain banned.

• During the Q4FY18, Company improved its power consumption to 69 Kwh/MT in Jan-Mar.18 from 71 Kwh/MT in Jan-Mar.17. Company's concerted efforts of reducing logistic and manufacturing costs also contributed to the improved performance.

• For the FY 2018, Company's Net Sales rose by 17% to Rs.3412.15 crore (Rs.2910.41 crore). PBIDT was up at Rs.479.46 crore (Rs.435.22 crore). PBT stood higher at Rs.102.71 crore (Rs.74.20 crore). Based on its annual performance, Company has announced a dividend of 15% same as last year.

• The Company initiated a work to set up a 20 MW Thermal Power Plan after commissioning of WHR plant in Dung to reduce the cost of power. The work on 20 MW Thermal Power Project is progressing as per schedule and is likely to be commissioned in the third quarter of 2018-19 when the costs of Durg unit are expected to come down significantly.

• In the current FY19, the Company expects the 20 megawatts of thermal power as well as Orissa grinding unit coming in. So with that basically the projects on hand will get completed and would like to consolidate for a couple of years before Company embark on fresh expansion which can take Company capacity from 13 million including the Udaipur cement plant to about 23 brownfield expansion.

• The Company clinker production stood at 1.69 mt (+6.3% YoY). Sirohi accounted for 1.2mt (100% utilisation), while clinker production at Durg stood at 0.49 mt (108% utilisation). Total sales for the quarter stood at 2.33 mt which included 1.60 from the North mt and 0.63 mt from the eastern side. The Company sold clinker up to 0.2 mt from Sirohi during the quarter.

• The Company total debt as of 31st March 2018, long-term debt was about Rs. 1400 crores, down by about Rs. 200 crores, and every year Rs. 200 crores is getting repaid.

• The Company expect about Rs. 200 crore in FY19 (CAPEX of Rs. 100 crore each in grinding in Orissa and thermal power plant). However, Company has no plan for further expansion as it intends to consolidate its position now and thus, any such expansion plan will be considered only after 12-15 months.