New Delhi: India Cements Ltd on Friday reported a consolidated net profit of Benefit Rs 58.47 crore in June 2024 Quarterly However, its sales declined 26 per cent YoY due to a sharp drop in capacity utilisation owing to persistent cash crunch. The Chennai-based company sold its grinding unit at Parli in Maharashtra in April and included a profit of Rs 240.68 crore from the sold unit as an exceptional item in the quarterly profit.
Before exceptional items and tax, India Cements Limited (ICL) has Loss The company's net profit stood at Rs 147.97 crore in the quarter under review.
The company, whose promoters are selling their stake to rival Aditya Birla Group firm UltraTech Cement, had reported a net loss of Rs 87.40 crore during the April-June quarter a year ago.
Its Income According to a regulatory filing by ICL, income from operations declined by 28.53 per cent to Rs 1,026.76 crore during the period under review, as against Rs 1,436.74 crore in the same quarter.
“Capacity utilisation of the company has been severely impacted due to persistent cash shortages owing to losses incurred in previous quarters,” the company said in its earnings report.
The N Srinivasan-led company could not pass on the benefit of reduction in fuel costs as operating margins narrowed further due to lower volumes.
“Higher production costs compared to competitors due to varying age of plants and sharp fall in cement prices impacted dispatch and margins,” it said.
Cement and clinker volumes during the quarter stood at 19.61 lakh tonnes, as against 26.66 lakh tonnes in the same quarter last year, a decline of over 26 per cent.
“EBIDTA stood at negative Rs 22 crore as against positive Rs 12 crore in the previous year. Interest and other charges increased to Rs 82 crore as against Rs 58 crore, while depreciation increased to Rs 55 crore as against Rs 53 crore and the resultant loss before exceptional items stood at Rs 160 crore as against loss of Rs 99 crore,” the statement said.
CIL's total expenditure declined by 22.76 per cent to Rs 1,190.24 crore in the June quarter.
CIL's total income declined by 27.81 per cent to Rs 1,042.27 crore in the June quarter.
Looking at the future, ICL said, “Rural demand is expected to improve further due to normal rainfall and heavy investments announced in the Budget on infrastructure and housing projects over the next five years.”
“The special fiscal support to Andhra Pradesh has raised fresh hopes of revival of economic activity in the region and the medium term prospects are good for the industry,” the south-based cement maker said.
On Friday, shares of India Cements closed at Rs 366.90, down 0.34 per cent on BSE.
Before exceptional items and tax, India Cements Limited (ICL) has Loss The company's net profit stood at Rs 147.97 crore in the quarter under review.
The company, whose promoters are selling their stake to rival Aditya Birla Group firm UltraTech Cement, had reported a net loss of Rs 87.40 crore during the April-June quarter a year ago.
Its Income According to a regulatory filing by ICL, income from operations declined by 28.53 per cent to Rs 1,026.76 crore during the period under review, as against Rs 1,436.74 crore in the same quarter.
“Capacity utilisation of the company has been severely impacted due to persistent cash shortages owing to losses incurred in previous quarters,” the company said in its earnings report.
The N Srinivasan-led company could not pass on the benefit of reduction in fuel costs as operating margins narrowed further due to lower volumes.
“Higher production costs compared to competitors due to varying age of plants and sharp fall in cement prices impacted dispatch and margins,” it said.
Cement and clinker volumes during the quarter stood at 19.61 lakh tonnes, as against 26.66 lakh tonnes in the same quarter last year, a decline of over 26 per cent.
“EBIDTA stood at negative Rs 22 crore as against positive Rs 12 crore in the previous year. Interest and other charges increased to Rs 82 crore as against Rs 58 crore, while depreciation increased to Rs 55 crore as against Rs 53 crore and the resultant loss before exceptional items stood at Rs 160 crore as against loss of Rs 99 crore,” the statement said.
CIL's total expenditure declined by 22.76 per cent to Rs 1,190.24 crore in the June quarter.
CIL's total income declined by 27.81 per cent to Rs 1,042.27 crore in the June quarter.
Looking at the future, ICL said, “Rural demand is expected to improve further due to normal rainfall and heavy investments announced in the Budget on infrastructure and housing projects over the next five years.”
“The special fiscal support to Andhra Pradesh has raised fresh hopes of revival of economic activity in the region and the medium term prospects are good for the industry,” the south-based cement maker said.
On Friday, shares of India Cements closed at Rs 366.90, down 0.34 per cent on BSE.