Chettinad Cement: Capacity addition to cement growth

New Delhi : The company's installed cement capacity was 8.5 million tonnes at end of March 2011, a jump of 325% from March 2007. The company's key markets are Tamil Nadu and the adjoining areas. Chettinad is setting up a green field cement plant in Karnataka with a capacity of 2.5 million tonnes, and has placed equipment orders for the plant. Other large players in south include India Cements, with a capacity of nearly 14 million tonnes at end of FY 11, and Madras Cements with 10.5 million tonnes.

Chettinad Cement's operating profit margin improved 520 basis points y-o-y to 38.1% in June 11 quarter, while its net sales increased 35.1% to Rs 472.4 crore. The company benefited from cement realisations, which improved nearly 39% y-o-y on a per tonne basis to Rs 4,536 per tonne, while dispatches grew 8.7%. Net profit also improved 247% y-oy during the review quarter.