India Cements posts Rs 151 crore profit

Vice-chairman and MD, India Cements, N Srinivasan

Chennai: India Cements Ltd has reported a marginal improvement in its operating performance for the quarter ended 30 September 2019 despite the drop in cement volume, through improved realisation and reduction in cost as compared to the same quarter of the previous year.

The company has reported a profit after tax of Rs 8.72 crore during the second quarter ending 30 September 2019 against Rs 1.43 crore in the same quarter in the previous year. Total income came to Rs 1248.94 crore against Rs 1390.84 crore.

The company has reported an overall profit of Rs 151 crore during the quarter compared to Rs 159 in the same quarter in the previous year. During the quarter, the overall cement sales dropped by 13 per cent to 26.67 lakh tonnes as compared to 30.77 lakh tonnes.

Vice-chairman and MD, India Cements, N Srinivasan said, “During the period between July to September 2019 the company lost three lakh tonnes (one lakh tonnes per month) in sales in Andhra Pradesh and Telangana due to fall in demand for cement in the two States. The impact of fall in sale was severe since the company has four plants in the two States. But, the demand was good in Tamilnadu and Kerala.” He added, “The company will make up for the loss in cement sales in the second half of this year with the expected pick up in demand in AP and Telengana and higher net plant realisation.”

Despite the drop in cement volume, the company reported marginal improvement in its operating performance by reducing power, materials and other costs and improved realisation on sale of cement. In the first six months ending 30 September 2019, the net profit was Rs 80.93 crore against Rs 22.46 crore in the same period in 2018-19 and total income was Rs 2720.94 crore compared to Rs 2757 crore.

NT Bureau