CHENNAI: India Cements Limited (ICL) reported a consolidated net loss of Rs 85.54 crore for the July-September quarter of the financial year 2023-24, narrowed from the loss of Rs 121 crore in the same period last year. The cement maker posted a loss of Rs 73.58 crore in the quarter ending June 2023. Revenue from operations stood at Rs 1,264 crore compared to Rs 1,327 crore in the same period the previous year. Despite reduction of coal prices, its cost of production remains high due to vintage plants.
ICL’s losses continued after the company’s plans to raise working capital from selling land parcels didn’t materialise. The company requires a working capital of nearly Rs 300 crore. India Cements managing director N Srinivasan said, “The company plans to raise working capital by recovering advances, including advances to India Cements Infrastructures Limited and Coromandel Sugars, from the group companies.” He said with this working capital, ICL will reduce cost of production by modernising its manufacturing facilities and hopes to be competitive with its peers in eight months.
India Cements’s total expenses in the second quarter of FY24 were down 10% to Rs 1,375.36 crore. The company’s overall volume for the quarter under review was 23.70 lakh tonnes as compared to 22.54 lakh tonnes in the previous year.