India Cements posts net loss of Rs 73.58 crore in Q1 FY24, Real Estate News, ET RealEstate

August 27, 2023

NEW DELHI: India Cements has reported net consolidated loss after tax of Rs 73.58 crore during the quarter ended June 30, 2023. It had recorded net consolidated profit after tax of Rs 83.83 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 1,443.87 crore in Q1 FY24, a dip of 5.30 per cent from Rs 1,524.63 crore it recorded in the similar quarter last year.

The selling price of cement was lower during the quarter under review due to severe competition caused by supply overhang. There was reduction in variable cost during the quarter on account of softening of fuel prices. The reduction in variable costs was offset by the reduction in realization resulting in lower margins. The lower margins impacted the liquidity severely resulting in lower volume for the quarter. The overall sales volume almost remained static as compared to the first quarter of the previous year.

The cement sales for the quarter under review was only 26.57 lakh tons as compared to 27.85 lakh tons in the previous quarter. The low sales was only due to liquidity crunch faced by the company consequent to lower margins and losses. The company has been improving its performance progressively over the last four quarters. The Variable Cost has been reducing over the period and there has been a reduction of Rs 168 per ton in variable cost during the quarter under review as opposed to the last quarter of previous year. The reduction in Variable Cost has directly flown to the bottom line resulting in positive EBIDTA for the quarter.The fuel cost which went up to a high of Rs.2.95 per Kcal in the third quarter of the previous year came down to a level of around Rs.2.38 per Kcal for the quarter under review. The overall variable cost for the quarter was marginally lesser by 2% when compared with the first quarter of the previous year at around Rs.52 per ton. But the sales realization was lower by 5% as compared to previous year at around Rs.268 per ton.

The company has planned to monetize some of the non-core assets to improve the liquidity for improving then operating performance as well as meeting some of the minimum capital expenses.

The board of directors noted and recorded that the second and final term of Basavaraju, independent director of the company would conclude on August 10, 2023. The board also noted that T.S.Raghupathy, non-executive non-independent director, due to health issues, tendered his resignation.

  • Published On Aug 7, 2023 at 05:00 PM IST

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