Shares of India Cements Ltd. fell the most in eight months after the company's quarterly profit fell on account of rising costs even as revenue topped estimates.
Net profit fell 40.9 percent to Rs 26 crore year-on-year, according to the company's exchange filing. The consensus estimate of analysts tracked by Bloomberg stood at Rs 52.6 crore. Revenue rose close to 22 percent to Rs 1,462 crore compared to the same quarter last year.
Total expenses for the company grew nearly 26 percent, led by power and fuel expenses, which grew 42 percent year-on-year, and operating expenses which rose 18 percent. This coupled with a 23 percent rise in depreciation costs dragged the net profit lower.
Higher power and fuel expenses also weighed on earnings before interest, taxes, depreciation and amortisation (EBITDA), which fell 7.5 percent to Rs 186 crore year-on-year. This was lower than the Bloomberg consensus estimate of Rs 232 crore. The margin contracted 400 basis points to 12.7 percent.
Shares fell nearly 8 percent to Rs 199.05, the most since November last year after the earnings announcement.
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