Chettinad Cement struck the 20% ceiling at Rs 48.10 early today after the company's results showed it was back in the black.

At its upper deck, there were outstanding buy orders of 6,700 shares on BSE.

This rise contrasts with the narrow range-bound (Rs 38-40) movement the stock of Chettinad Cement Corporation (CCC) has witnessed in the past few months. The stock is generally thinly traded with average daily volumes over the last one year (to 20 June 2003) at 2,069 shares.

CCC has returned to profitability in FY 2002-03. For the fourth quarter ended 31 March 2003, CCC reported a net profit of Rs 9.70 crore compared to a loss of Rs 2.70 crore in the corresponding period last year.

Net sales surged 33.2% to Rs 82.70 crore compared to Rs 62.10 crore in Q4 ended 31 March 2002.

Even so, for the full year (FY 2002-03), CCC reported a net loss of Rs 7.20 crore as against a net loss of Rs 11.90 crore in FY 2001-02. Net sales surged 41.8% in FY 2002-03 to Rs 266.20 crore from Rs 201.80 crore in FY 2001-02.

To add to the cheer for the company, cement prices in the south, which had ruled quite weak over the years, are in recovery mode over recent months, according to cement analysts.

The national highway projects are going on in full steam in the southern states including Andhra Pradesh.

CCC has a network of dedicated stockists numbering 1,000 in Tamil Nadu and 450 in Kerala. It mainly caters to these markets. The company has a market share of about 10% each in Tamil Nadu and Kerala.

The company had come out with a rights issue a few months ago, so as to improve debt-equity ratio, on the insistence of its bankers . The company had raised Rs 30.35 crore through a 2:5 rights issue.

CCC, which recently commissioned a new plant, has put in place several financial and operational measures to control cost and improve sales and has also laid out plans to strengthen its processes and systems in the marketing area, the company said in the rights offer document. The company's equity stands at Rs 29.51 crore.