Chennai: India Cements Limited has reported improvement in its operating performance for the quarter ended 30 June with the firm’s net profit before tax coming it at Rs 106 crore, against Rs 27 crore year-on-year (y-o-y), on the back of improved selling prices and sustained efforts of cost reduction.
A release from the firm said the EBITDA of the company increased by more than 50 per cent when compared with the same quarter of the previous year.
The capacity utilisation of the company during the quarter was 7 per cent, while overall cement sales (including clinker) was at 30.42 Lakh tonnes for the quarter as compared to 30.75 lakh tonnes in the same quarter of the previous year.
With the improved selling price of cement, the net plant realisation went up by 11 per cent during the quarter over that of previous year, the release stated.
India Cements said the variable cost of production was kept under tight leash despite the higher fuel and diesel price as compared to the same quarter of the previous year and it was up by only one per cent.
The resultant EBIDTA was significantly higher at Rs 245 crore as compared to Rs 162 crore in the same quarter of the previous year, it added.
“We expect demand to revive post monsoon and once the new governments in Andhra Pradesh and Centre finalise their action plans. The cement prices which started improving from the month of February stabilised at reasonable levels during the next three months and has witnessed some aberration which is likely to get corrected post monsoon,” said the firm in its release.