The company posted top-line growth of 12% during the quarter ended March 2008. The revenue increased to Rs 88.74 crore as compared to the corresponding quarter of the previous year. The operating margins of the company however fell significantly by 960 bps during the quarter to 15.5% mainly due to significant increase in raw material cost and employee cost. As a result the operating profit significantly dented by 31% to Rs 13.73 crore. The bottom-line posted a significant drop of 58% to Rs 6.17 crore during the quarter ended March 2008.

For the year ended March 2008 however the company posted excellent top-line and the bottom-line growth backed by excellent performance by the cement division of the company. The company has reported a growth in net sales of 36% to Rs 338.45 crore as compared to the previous year. Both the cement and the engineering division performed exceedingly well during the year. The PAT posted a growth of 32% to Rs 63.53 crore.

The consolidated numbers, which include the company’s Sugar & Biotech business, also posted excellent top-line and the bottom-line growth during the year, ended March 2008. Revenue increased by 36% to Rs 508.08 crore as compared to the previous year whereas the PAT during the year under review after providing for minority interest increased by 30% to Rs 77.15 crore.

Performance for the quarter ended March 2008-

The company posted excellent top-line growth during the quarter ended March 2008 mainly driven by the excellent performance of the cement division of the company. Revenue was up by 12% to Rs 88.74 crore as compared to the corresponding quarter of the previous year. The operating margins of the company fell significantly by 960 bps during the quarter to 15.5% mainly due to significant increase in raw material cost and employee cost. Other operating costs like the power cost and the freight cost also increased during the quarter under review. The raw material cost as a percentage of net adjusted sales increased by 830 bps to 23.5%. The total raw material cost during the period was Rs 21.44 crore. The employee cost increased by 480 bps to 10.5% of adjusted sales. Power cost increased by 310 bps to 21.2%. Thus the total operating cost increased by 70 bps to Rs 82.4 crore during the quarter. As a result the operating profit significantly dented by 31% to Rs 13.73 crore.

Other income of the company increased by 5% to Rs 2.39 crore and the interest cost and the depreciation allowance increased by 8% and 25% to Rs 1.29 crore and Rs 2.13 crore respectively. As a result the profit before tax fell by 34% to Rs 12.70 crore during the quarter. Effective tax rate increased to 51% as compared to 24% during the corresponding previous year quarter, as a result the net profit (PAT) posted a significant drop of 58% to Rs 6.17 crore during the quarter ended March 2008.

Performance for the year ended March 2008-

For the year ended March 2008 however the company posted excellent top-line and the bottom-line growth backed by excellent performance by the cement division of the company. The company has reported a growth in net sales of 36% to Rs 338.45 crore as compared to the previous year. Both the cement and the engineering division performed exceedingly well during the year. Though the raw material cost of the company during the year increased by 370 bps during the year other operating costs like the employee cost, power cost and the freight cost fell marginally. The employee cost fell by 100 bps whereas the power cost and the freight cost fell by 50 bps and 20 bps respectively. The OPM thus remained unchanged at 30.8% as compared to the previous year. The operating profit as a result improved by 36% to Rs 104.19 crore during the year ended March 2008.

Other income during the year increased by 6% to Rs 6.89 crore while interest expenses increased by 27% Rs 5.64 crore. Provision for depreciation increased by 33% to Rs 8.24 crore. PBT hence increased by 34% to Rs 97.20 crore as compared to the previous year. The effective tax rate during the period was 34% as compared to 33% during the previous year. As a result PAT posted a growth of 32% to Rs 63.53 crore.

Consolidated performance of the company for the year ended March 2008-

The consolidated numbers, which include the company’s Sugar & Biotech business posted excellent top-line and the bottom-line growth during the year, ended March 2008. Revenue increased by 36% to Rs 508.08 crore as compared to the previous year.

The OPM during the year fell by 110 bps mainly due to increase in raw material cost during the year. The engineering division posted a top-line of Rs 206.61 crore and the cement division posted a top-line of Rs 241.40 crore. Power and Sugar division posted a top-line of Rs 16.26 crore and Rs 123.23 crore respectively whereas the biotech division posted a top-line of 3.24 crore during the year. The operating profit increased by 30% to Rs 138.70 crore during the year ended March 2008.

Other income during the year increased by 17% to Rs 5.72 crore while interest expenses marginally fell by 1% to Rs 9.12 crore. Provision for depreciation increased by 22% to Rs 16.05 crore. PBT hence increased by 34% to Rs 119.25 crore as compared to the previous year. The effective tax rate during the period was 30% as compared to 28% during the previous year. As a result PAT during the year under review after providing for minority interest increased by 30% to Rs 77.15 crore.

Engineering

Engineering segment contributed 34% of the total revenue of the company during the quarter ended March 2008. Revenue from this division fell by 23% to Rs 37.13 crore during the quarter ended March 2008 as compared to the same period last year. The profit from the division, which contributed 71% of the total gross profit fell by 32% to Rs 9.86 crore during the quarter, ended March 2008.

Revenue from the division during the year ended March 2008 increased by 18% to Rs 161.78 crore whereas the profit during this period increased by 20% to Rs 49.78 crore.

Cement

Cement division contributed 62% of the total revenue of the company during the quarter ended March 2008. Revenue during the quarter increased by 50% to Rs 67.81 crore as compared to the same period last year. The profit from the division during the quarter however fell by 65% to Rs 2.79 crore.

Cement revenue during the year ended March 2008 increased by 51% to Rs 241.4 crore whereas the profit increased by 40% to Rs 47.93 crore.

Power

Power segment contributed a minuscule 4% of the total revenue of the company during the quarter ended March 2008, whereas the profit from the division during this period contributed 9% of the total profit of the company during the quarter. The revenue from the division increased by 23% to Rs 4.58 crore, whereas the profit during this period fell by 42% to Rs 1.28 crore during the quarter ended March 2008.

The company had declared a final dividend of 25% during the year ended March 2008. Thus including the interim dividend of 75% declared by the company earlier during the year the total dividend for the year stood at 100% on the paid up capital.

The Board of Directors and shareholders approved the scheme of amalgamation of subsidiary KCP Biotech Ltd under Section 391 & 394 of the Companies Act, 1956 from the appointed date viz. April 01, 2007. However the effects of the merger is still not given in the accounts since necessary sanctions are pending from the concerned courts.

The promoters currently hold around 46.25% of the equity in the company.

The scrip of the company is currently trading at Rs 241 on the BSE.