Sanghi Industries posts 75 rise in PAT

Ahmedabad, June 2 (UNI) Sanghi Industries Ltd, one of the largest cement manufacturers in Western India, has posted a 75 per cent rise in profits for the year ended March 31 this year.

The improved plant utilisation and sales realisation has helped the company post an impressive 46 per cent growth in net sales at Rs 817.98 crore. The company has earned an operating margin of 37 per cent keeping with its reputation of one of the lowest cost cement producers in the country. The gross profit of Rs 309.79 crore has recorded a jump of 69 per cent over the previous year.

The company's net profit after tax was Rs 142.77 crore in FY-07, recording an increase of 75 per cent over FY-06, a company release said.

The company has sold about 50 per cent of its clinker and cement in export markets. It is the only leading cement brand to be sold in branded and bagged form in the international market. It enjoys 70 per cent market share in bagged cement exports out the country, which fetches 50 per cent higher realisations as compared to loose cement. The company has been accorded the status of ''Trading House'' by the Joint Director General of Foreign Trade due to its excellent export performance.

In Gujarat , its home market, Sanghi brand enjoys a price leadership and has captured a market share of 14 per cent.

The company is implementing 60 mega watt captive thermal power plant with a project cost of around Rs 240 crore. The same will be commissioned by early FY-09. The project is estimated to give a substantial savings of around Rs 150 per tonne of cement produced, that is about Rs 40 crore per annum.

The company is also implementing expansion of its cement capacity to around 8.15 mn tonne in next three years in a single phase. It will enhance clinker capacity by 3.3 mn tonne and grinding capacity by about 5 mtpa. It also covers setting up other important infrastructure like another captive power plant, terminals, conveyor belts and bulk loading system which would bring down the operational costs. The project is expected to be commissioned by end FY-09.

The company currently enjoys market capitalisation of more than Rs 1300 crore. The growth and expansion model pursued by the company will place the company in top five cement manufacturers in India in 3 years.

UNI