In­dia Ce­ments Posts .` 31-cr Loss

The Economic Times - - Companies - OUR BUREAU

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.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.