India Cements fourth-quarter net profit rises to Rs 35.27 crore
CHENNAI: India Cements posted a 2.9 per cent rise in fourth-quarter net profit to Rs 35.27 crore, amid rising prices of petroleum coke and crude oil, sending its shares up five per cent to Rs 130.80 at close.
The company, which has expanded its capacity utilisation to 79 per cent in the last three months following its merger with Trinetra Cement and Trishul Concrete Products from 70 per cent last year, said the loss in revenue growth was compensated by an eight per cent uptick in sales volumes in the quarter.
“However, bargains for cheaper pricing of cement from builders, rise of Rs 200 in costs per tonne and a shortage of bulkers to deliver cement in high-demand areas in Maharashtra and the western region have been the major issues this year,” said N Srinivasan, Vice-Chairman and Managing Director.
The raise in customs duty of petcoke to 11 per cent from the three per cent levied earlier, and a substantial rise in petroleum products due to conditional withdrawal of a ban on use of petcoke by the Supreme Court, has also added to the cement industry’s woes, a statement by the company said.
India Cements also said the prolonged issue of sand-mining ban in Tamil Nadu is also hurting the company’s bottomline.
Nearly 40 per cent of the company’s total domestic production is catered through its four cement plants located across the state.
The company reported an eight per cent drop in standalone revenue to Rs 1,401.73 crore for the March quarter.