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HEMADRI CEMENTS LIMITED
ANNUAL REPORT 2011-2012
MANAGEMENT DISCUSSION AND ANALYSIS
FINANCIAL RESULTS: Rs Lacs
2011-2012 2010-2011
Sales and other Income 8350.93 5247.89
Profit/(Loss) before Interest and Depreciation 1687.87 1088.92
Interest 33.61 4.62
Profit/(Loss) before Depreciation 1654.26 1084.30
Depreciation 86.23 84.65
Profit/(Loss) before tax 1568.03 999.65
Tax Expenses - -
Current Tax 531.21 368.16
Deferred Tax (52.60) (12.77)
Profit/(Loss) after Tax 1089.42 644.26
Management discussion and analysis
The Company has achieved a milestone by reaching the mark of 2.5 lakh tones
of cement production. During the year under review your company achieved a
total cement tonnage of 2,52,164 MT as against 2,05,418 IWT during the
previous year.
Your Company has made a Net Profit before Extraordinary Items of Rs.
1568.03 Lakhs during the year, as against Net Profit of Rs. 999.65Lakhs in
the previous year.
Your company could ride on the short term buoyancy in the market and
despite increasing input costs, could post a decent profit during the year
under review.
Economic Outlook
The construction activity has been growing very marginally over the recent
past and the growth is sporadic. The market, of late, is unable to absorb
the price increases which is necessitated owing to increase in input costs,
but this trend is likely to be short-lived. Moreover, further capacities
have been added particularly in the state of A.P. which would make the
market more competitive. Shortage of other input materials for construction
activity is also a limiting factor which we need to contend with.
Opportunities and Threats:
Your company, riding the swing of good market, has been able to sustain
itself during the last couple of years.
The major threats are the unprecedented increase in the cost of major raw
materials like coal and power. There is also a shortage of availability of
coal which would continue to exert pressure on the economic viability of
your company.
Power continues to be another major threat as there is a high possibility
of the same getting scarce and more expensive as the year progresses.
Further as new capacities are being added, the market competition is likely
to be more intense which might result in affecting the price line for the
end produce.
INDUSTRIAL RELATIONS AND STAFF WELFARE:
Industrial relations with staff and workmen remained harmonious and
cordial. Wage agreement with the Workers' Union for the period 2011-13 has
been amicably settled and has come into force from June 2011.
POLLUTION CONTROL:
The Company has adequate pollution control equipments and also has
developed various plantations around the factory premises. Recently, in
line with the requirement of the Pollution Control Regulations, online
chimney monitoring system has been installed and the same is working
satisfactorily.
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HEMADRI CEMENTS LIMITED
ANNUAL REPORT 2010-2011
MANAGEMENT DISCUSSION AND ANALYSIS
Your Company has been discharged by the Hon'ble BIFR from the purview of
Sick Industrial Companies (Special Provisions) Act, 1985, vide its order
dated 27th July 2011.
The Company has achieved a Cement tonnage of 205,418 MT during the year as
against a tonnage of 203,643 MT in the previous year.
Your Company has made a Net Profit before Extraordinary Items of Rs. 999.65
Lakhs during the year, as against Net Profit of Rs. 693.69 Lakhs in the
previous year.
Your company could ride on the short term buoyancy in the market and
despite increasing input costs, could post a decent profit during the year
under review.
ECONOMIC OUTLOOK
The construction activity has been growing very marginally over the recent
past and the growth is sporadic. The market, of late, is able to absorb the
price increase which is necessitated owing to increase in input costs; but
this trend is likely to be short-lived. Moreover, further capacities have
been added particularly in the state of A.P. which would make the market
more competitive.
OPPORTUNITIES AND THREATS:
Your company, riding the swing of good market, has been able to sustain
itself in the recent years.
The major threats are the unprecedented increase in the cost of major raw
materials like coal. There is also a shortage of availability of coal which
would continue to exert pressure on the economic viability of your company.
Power continues to be another major threat as there is a high possibility
of the same getting more expensive as the year progresses.
Further as new capacities are being added, the market is likely to become
more competitive which might result in affecting the price line for the end
produce.
INDUSTRIAL RELATIONS AND STAFF WELFARE:
Industrial relations with staff and workmen remained harmonious and
cordial. Wage agreement with the Workers' Union for the year 2011-13 is
underway in a cordial atmosphere.
POLLUTION CONTROL:
The Company has adequate pollution control equipments and also has
developed various plantations around the factory premises.
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HEMADRI CEMENTS LIMITED
ANNUAL REPORT 2008-2009
MANAGEMENT DISCUSSION AND ANALYSIS
PERFORMANCE:
The Company has made a Net Profit before Extraordinary Items of Rs. 323.69
Lakhs during the year, as against Net Profit of Rs. 1529.59 Lakhs in the
previous year.
The Company has achieved a Cement Tonnage of 193,392 MT during the year as
against a tonnage of 221,724 MT in the previous year.
FUTURE OUTLOOK:
The company has now stablilised its output at around 2 Lakh tons per annum.
The company has inducted additional Promoters to add to the financial
strength of the company in view of the bleak / poor outlook in the
foreseeable future as a result of huge capacity additions of Cement in
2009-2010. However the company will be totally debt free during the first
half of 2009-2010 financial year and hence should be able to brave this
difficult period better than most of the other companies, who have borrowed
heavily to implement their expansions.
INDUSTRIAL RELATIONS AND STAFF WELFARE:
Industrial relations with staff and workmen remained harmonious and
cordial.
POLLUTION CONTROL:
The Company has adequate pollution control equipments and also developed
various plantations around the factory premises.
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