CHENNAI: With tough conditions prevailing in its main market Tamil Nadu, India Cements on Friday reported a net profit of Rs 15.24 crore on a total income of Rs 1,216 .75 crore for the October-December 2018 quarter. The company had reported a profit of Rs 35.34 crore and total income of Rs 1,274.9 crore in the year-ago quarter. However, the figures are not comparable due to the merger of subsidiaries with India Cements.
The third quarter was the most challenging period for the company,” said N Srinivasan, vice-chairman and managing director. Sand mining issues, RERA impact, uncertainty on the usage of pet coke and drop in demand in Tamil Nadu were some of the main issues, he added. “Besides, the increase in the cost of fuel and petroleum products added to the woes.”
To maintain the overall profit margin, the company resorted to cutting fixed cost by closing down some divisions, rationalising and pruning manpower to optimum size. Total expenses during the quarter was lower at Rs 1,201 crore compared to Rs 1,216 crore one year ago. Due to the challenging market conditions in Tamil Nadu, volumes were hit.