The year 2012-13 was the most turbulent period for Indian economy and businesses. The acute slow down led to the economy recording a growth of 5%, the lowest in the decade. This had adversely affected the performance of cement industry. After staging a modest recovery in 2011- 12 with a growth of 6.6%, it slipped again to 5.5% growth in 2012-13. Your company reported a net profit of Rs 163.56crore on a turnover of Rs 4613 crore for the year 2012-13. It faced all round cost increase, capacity over hang in the south, steep fall in cement prices in Andhra Pradesh affecting the overall price realisation. The current financial year has begun on a positive note with prospects for economic recovery.

The GDP growth is expected to be 6.4% (as estimated by PM’s economic advisory council). Cement manufacturers have predicted a growth of 7 to 8%. The capacity addition in the current year is likely to come down significantly, which is a major positive for the industry.

Your company is hopeful of benefitting from the better price realisation in parts of Andhra Pradesh and Tamil Nadu markets. The captive thermal power plant at Sankar Nagar has stabilised at better levels of efficiency while the thermal plant at Vishnupuram is under commissioning. This will mitigate the impact of difference in the cost of power. The first shipment of coal from the company’s mines in Indonesia has arrived at Tutricorin port. These developments augur well for the company’s performance in the current year.