India Cements Q1 Results: Net Profit At Rs 58.47 Crore, Revenue Falls By 28.53%
The company's revenue from operations fell 28.53% to Rs 1,026.76 crore, down from Rs 1,436.74 crore in the same period last year.
India Cements Ltd has reported a consolidated net profit of Rs 58.47 crore for the June 2024 quarter, despite a 26% drop in sales volume driven by significant capacity utilisation issues amid ongoing liquidity constraints.
The company's revenue from operations fell 28.53% to Rs 1,026.76 crore, down from Rs 1,436.74 crore in the same period last year. This decline was partly offset by an exceptional gain of Rs 240.68 crore from the sale of its Parli, Maharashtra grinding unit in April.
Excluding exceptional items and taxes, India Cements Ltd. faced a loss of Rs 147.97 crore for the quarter, compared to a net loss of Rs 87.40 crore in the corresponding quarter of the previous year.
Cement and clinker volumes for the quarter stood at 19.61 lakh tonne, down from 26.66 lakh tonne in the same quarter last year. Ebitda turned negative at Rs 22 crore, compared to a positive Rs 12 crore in the previous year.
Interest and other charges rose to Rs 82 crore from Rs 58 crore, while depreciation increased to Rs 55 crore from Rs 53 crore, resulting in a loss before extraordinary items of Rs 160 crore, up from Rs 99 crore.
Total income for the quarter decreased by 27.81% to Rs 1,042.27 crore, while total expenses fell 22.76% to Rs 1,190.24 crore.
The company attributed its challenges to severe capacity utilisation issues caused by liquidity problems, which prevented it from benefiting from reduced fuel costs. Rising production costs relative to competitors and a sharp decline in cement prices also negatively impacted margins.
Additionally, India Cements Ltd is in the process of selling its stake to rival UltraTech Cement, a subsidiary of the Aditya Birla group.
Shares of the company closed 0.34% lower at Rs 366.90 apiece, as compared to a 1.04% advance in the BSE Sensex.
(With inputs from PTI)
