CHENNAI: India Cements has registered a net profit of Rs 40.10 crore, up from the net loss of Rs 2.96 crore it posted in the corresponding quarter of the previous year.
The company’s Managing Director N Srinivasan said that the industry had seen a better turnaround, and he was hopeful that the demand will pick up further by the final quarter of the financial year, spurred by AP and Telangana.
The company’s profit comes despite a one-time Rs 10 crore odd provision for increased wage settlement and a Rs 17 crore provision of expecting expenses toward the District Mineral Foundation.
Capacity utilisation has dropped to 58 per cent from 67 per cent in the corresponding quarter.
“But with some concrete moves in Andhra Pradesh and Telangana indicating an increase in demand from there, we are hopeful that capacity utilisation might go up starting from January,” he said.
Net plant realisation per tonne of cement has increased by almost Rs 600 to stand at Rs 3930 compared to Rs 3312 earlier. Total income from operations stood at Rs 1,075.45 croreagainst Rs 1234.82 crore during the corresponding quarter of last year.
The total sale of cement for the quarter for India was 20.81 lakh tonne as against 23.91 lakh tonne a year ago, a drop of 13 per cent.