narmada cement company ltdmerged Management discussions


NARMADA CEMENT COMPANY LIMITED ANNUAL REPORT 2004-2005 MANAGEMENT DISCUSSION AND ANALYSIS PERFORMANCE Sales, production and profitability Sales and other income for the financial year under review were Rs. 243.60 crore as against Rs. 181.69 crore for the previous year which showed an increase of 34%. Clinker production at the Companys Jafrabad Works was 14.07 lakh metric tonnes as against 13.45 lakh metric tonnes during 2003-04. Cement and clinker dispatches during 2004-05 were higher at 15.23 lakh metric tonnes, which showed an increase of 16% over 13.18 lakh metric tonnes achieved during the previous year. The Company reported a Profit before tax of Rs. 20.52 crore for the year 2004-05 as against a loss of Rs. 26.63 crore for the Previous year. Review of operations The Company continued its ongoing efforts to improve the efficiency of its plants through better utilization of available facilities. Market scenario The cement industry saw an encouraging growth in demand during the year. Demand continued to be good both in Gujarat arid Maharashtra States. The prices showed signs of improvement during the second half of the current year. However, in certain markets, the prices remained low for most part of the current year. Future demand for cement would depend upon Governments investment plans in various infrastructure projects as envisaged in the Budget.