Madras Cements Q3 net surges 172% on cost-saving measures

Madras Cements today posted a 171.5% rise in net profit for the third quarter of the 2010-11 fiscal to Rs 43.48 crore on the back of successful cost-saving measures.

The company had reported a net profit of Rs 16.01 crore for the corresponding quarter of the previous fiscal, it said in a filing to the Bombay Stock Exchange (BSE).

Madras Cements' total expenditure declined by Rs 37.33 crore during the October-December quarter of the ongoing fiscal to Rs 485.35 crore from Rs 522.68 crore a year-ago, thanks to savings on raw material and transportation expenses, which boosted its bottomline.

The company had earlier said it would concentrate on operational efficiency and cost reduction measures in all areas of production and distribution to protect and improve profitability.

Net sales of the company -- which has an annual production capacity of 10.49 million tonnes of cement -- witnessed a negligible increase to Rs 579.21 crore during the third quarter of the current fiscal from Rs 579.46 crore in the corresponding year-ago period.