India Cements Posts .` 31-cr Loss
NSrinivasan-run India Cements swung to a fourth quarter loss versus a profit last year on weak demand, sending its shares down 5%. The company hopes for a revival in the second half and is looking to unlock value through sale of land parcels as part of its strategy to divest non-core assets. The Chennai-based company posted a fourth-quarter net loss of about .` 31 crore, compared with a net profit of .` 27 crore last year. The current quarter results included loss from the sale of a ship
Company’s fourth quarter revenue declined 9.9% to 1,080.1 cr from 1,190.6 cr a year-ago
of .` 31.91 crore and .` 49.34 crore profit from sale of land. The company’s revenue declined 9.9% to .` 1,080.06 crore from .` 1,190.64 crore a year-ago. The net plant realisation fell 6% to .` 3,057 per ton from .` 3,250 in the same quarter last year. The company’s cement production fell 11% to 24.65 lakh tons from 27.63 lakh in the comparable period last year. “The southern market suffers from the capacity overhung. This is not the case with north and east. This has hurt realisations,” said N Srinivasan, vice-chairman and managing director of India Cements. He pointed out that while the company’s cement plants in south are operating at 70%, its plant in Rajasthan is operating at 100%.
Cement demand in South is expected to be subdued due to the build of excess capacity. There has been a capacity of 105-107 million tonne, versus the demand of 65-70 million tonne, as new capacity get added by Jaypee Cement, Dalima Cement and Chettinad Cement.