The heavy monsoon impacted the construction activity in the country, which resulted in a lower cement off-take and lower cement prices, which continued till November 2003. The sales realisations were lower by 6 percent as compared to the corresponding quarter of the previous year. The operating profit was at Rs.112.61 crore as against Rs. 140.45 crore in the corresponding quarter the previous year. Interest cost was down to Rs. 22.11 crores as against Rs 26.11 crores last year, a decrease of 15 percent.

After providing depreciation of Rs. 40.61 crore (Rs.43.90 crore), tax and exceptional items, the net profit was at Rs. 59.54 crore as against Rs. 60.32 crore in the same period in the previous year.

Cement demand started picking up from December 2003. On the back of a good demand, cement prices have started moving up from a very low level reached in September 2003.

It is expected that road and house construction activity will accelerate in the coming months and the current upsurge in economic activity in the country would generate good demand for cement. The company expects the second half of the current financial year to be much better due to good cement demand and better prices.