India Cements has reported a net loss of ₹3 crore for the quarter ended June 30, 2014, against a net profit of ₹17 crore in the same period last year. Revenue was almost flat at ₹1,226 crore (₹1,238 crore).

The loss in the first quarter of this year was lower than the ₹30.56-crore loss it reported in the fourth quarter of the last financial year. The company’s Vice-Chairman and Managing Director N Srinivasan attributed the loss to ‘severe’ cost factors, including transportation. This is despite a nominal recovery in selling prices from June, he told newspersons.

There was a nearly 9 per cent increase in the overall cost of transportation, said a company official.

The industry had to bear the substantial cost imposed through increase in freight charges due to load restrictions by authorities on outward and inward movement of material. There was increase in prices of petroleum products, hike in railway freight, which could not be passed on given the tough market conditions with unremunerative prices during most part of the quarter, says a company press release. Total sale, including clinker, was lower by 3 per cent at 25.58 lakh tonnes (26.49 lakh tonnes).

The net plant realisation improved marginally by 3 per cent to ₹3,293 a tonne against ₹3,185 in the corresponding quarter last year and ₹3,057 in the last quarter of 2013-14.

Srinivasan was optimistic about cement demand picking up with the Government focusing on reviving sectors such as infrastructure and housing. The bifurcation of Andhra Pradesh has also raised hopes for renewed economic activity under the new governments in Andhra Pradesh and Telangana where the company has two plants in each State.

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