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| Annual Report 2008-09
25
Enhanced exports during the year
resulted in increased revenues from
export incentives by 54% to Rs16 crores.
The operating income, which also
includes processing charges and
miscellaneous scrap sales, increased by
1% to Rs6 crores. Other income, which
contributed 1% of the total income,
decreased by 35% over the previous year.
Other income mainly comprised of
dividend and interest income which are
recurring in nature. It was lower
compared with the previous year in
which the Company received a non-
recurring refund paid for coal purchase.
Costs
Total
cost
(excluding
interest,
depreciation and tax) increased by 15%
over the previous year. However, as a
percentage of total income, it decreased
marginally by 0.22%.
Raw materials
Raw materials cost increased, in absolute
terms, by 8% and as a proportion of total
income decreased by 3.64% during the
year. This absolute increase in
consumption was compensated by a
timely revision of the sale price of finished
goods.
Utilities
Utilities cost increased 3% in absolute
terms during the year. However, as a
proportion of total income, they
decreased from 10% in the previous year
to 9% during the year. The Company
took several utility conservation measures
across its operational units.
Employees
Employees cost increased by 13% in
absolute terms mainly on account of new
recruitment and increments | corrections
during the year. Revenues per employee
increased from Rs0.38 crores to Rs0.44
crores during the year.
Margins
The Company registered an improved
profitability at the operating and
net levels. In absolute terms,
EBIDTA increased from Rs100 crores to
Rs118 crores, due to better sales
realisation which was partly offset by
higher raw materials prices and
employees and repairs costs. PBT
increased by 20% to Rs46 crores
compared to the previous year. However,
PAT margin remained stagnant at
3% during the year due to higher
tax payment as compared with the
previous year.
Funds
Equity capital
The equity capital remained unchanged
at Rs29.67 crores, with no equity dilution
during the year. The equity capital
comprised of 2,96,91,780 equity shares
of Rs10 each, of which 6.62%
constituted bonus shares by capitalisation
Individual cost heads as a proportion of operational revenues:
Cost heads
% of operating revenues
2008-09
2007-08
Raw materials
52.64
56.28
Power, fuel and water
9.26
10.36
Employees
7.61
7.79
Stores consumed
3.33
3.32
Machinery repairs
3.17
3.05
Building repairs
0.58
0.63
Interest
3.44
3.17
Depreciation
2.66
2.84
Tax
0.64
0.36