CHENNAI: India Cements Limited has reported a pre-tax profit of Rs. 40.41 crore before extraordinary income for the year ended March 31, 2006, against a loss of Rs. 58.82 crore in the previous year. The net profit after tax was also higher at Rs. 45.31 crore (including extraordinary income of Rs. 9.57 crore) against Rs. 4.58 crore (including extraordinary income of Rs. 63.40 crore). Sales and other income for the year under review was up by 31 per cent to Rs. 1,836.69 crore from Rs. 1,402.30 crore.

The company achieved the turnaround due to sustained efforts on the marketing front and through financial restructuring, said a release from the company.

In view of the carry forward losses, the board has not recommended any dividend on preference and equity shares.

During the year under review, efforts were taken to revamp the debt through infusion of equity via global depository shares. The funds thus raised were primarily utilised for repayment of a part of its debt. The company was also looking at swapping some of the high cost debts with low cost funds. The company, the release said, had taken on hand various projects to modernise and upgrade its existing plants at an estimated cost of Rs. 345 crore. Employee Stock Option

The directors of India Cements have decided, subject to the approval of shareholders and other appropriate authorities, to grant a total of 15 lakh equity shares of Rs. 10 each fully paid-up on payment of Rs. 50 per share, including premium, under Employee Stock Option Scheme (ESOS) to eligible employees.

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