India Cements’ net loss widens to Rs 243.77 crore in Q4 FY23, Real Estate News, ET RealEstate

June 24, 2023

NEW DELHI: India Cements has reported net consolidated loss after tax of Rs 243.77 crore during the quarter ended March 31, 2023. It had registered net consolidated loss after tax of Rs 26.16 crore in the corresponding quarter of the previous fiscal, the company said in a BSE filing.

The company’s net consolidated total income stood at Rs 1,493.66 crore in Q4 FY23, a growth of 4.83 per cent from Rs 1,424.80 crore it recorded in the similar quarter last year.

“The performance of the company during the year under review was adversely impacted by the record increase in the cost of fuel and power which could not be compensated in the market due to supply overhang. This was compounded by one off charges on account of impairment of certain investments and advances. This was to some extent compensated by the profit on sale of investments. All these factors led to dismal performance for the quarter and the year ended 31st March 2023,” it said in a media release.

For the year under review, the company’s overall volume of sales was up by 9% in line with the industry. While clinker production was up by 8% at 72.98 lakh tons (67.60 lakh tons) the overall sales was at 98.93 lakh tons up from 90.70 lakh tons.

With lower production of blended cement on account of market mix and with lower capacity utilization of only 63% for the year, the margins were squeezed with uncompensated cost increase. The company as a prudent policy took steps to improve the liquidity through sale of investments in Madhya Pradesh which helped in the short term to improve the capacity utilization to around 72% in the 4th quarter as against 60% in the previous nine months.

During the year under review, the cost per Kcal of fuel increased from around Rs 1.85 in the previous year to Rs 2.90 in the current year and average rate of power went up from Rs 5.20 per KWH to Rs 7.04 per KWH an increase of 35%. These two major factors together with reduction in blended cement proportion increased the cost of production by more than Rs 840 per ton or 31% over that of previous year while net plant realization improved hardly by Rs 200 per ton resulting in substantial erosion of the margins. This together with all these factors mentioned above resulted in a negative EBIDTA of Rs 140 crore as compared to an EBIDTA of Rs 478 crore in the previous year. India Cements plans for improving the liquidity in the short term through disposal of some non-core assets and steps are being taken to improve the operating parameters through refurbishment of some of the plants. The required funds for this are proposed to be generated through disposal of other non-core investments including land.

The board appointed V. Manickam as a non-executive independent director of the company to hold office for the first term of three consecutive years with effect from June 24, 2023.

  • Published On May 24, 2023 at 05:00 PM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETRealty App

  • Get Realtime updates
  • Save your favourite articles

Scan to download App

Source link

Abhay Singh

Web Developer

Leave a Comment