India Cements’ net profit dropped by more than 50 per cent during the third quarter of the current year as compared with the corresponding quarter previously.
The cement manufacturer’s net profit for the quarter ended December 31, 2012, was Rs 26.12 crore (Rs 56.31 crore) on a total income of Rs 1083.88 crore (Rs 943.95 crore).
Addressing media persons on the company’s performance and outlook, N. Srinivasan, Vice-Chairman and Managing Director, said that in the backdrop of the slow market and growing costs, the company has managed to conserve its margins and turned in a ‘good performance.’
Net plant realisation during the quarter was Rs 3,360 a tonne (Rs 3,460). Capacity utilisation is about 70 per cent on an average.
There are indications that the demand is picking up and the company can look forward to improved realisations and margins, Srinivasan said.
The company expects to commission its 50 MW captive thermal power plant at Vishnupuram in July. A similar capacity has gone onstream at Sankar Nagar. Together, they will help address the fuel and power cost. Also, coal imports from the captive mine in Indonesia is expected soon, he said.
Responding to a question on expanding its market and production base, Srinivasan said the company will consider adding a 1.2-million- tonne a year line in Rajasthan when needed. This will help it tap the market in the region including Gujarat. The company is examining this, involving investment of over Rs 650 crore, as an option.
On the NSE, the company’s Rs 10 shares closed at Rs 80.60 against the previous close of Rs 82.30.