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Hit by the ongoing demand slowdown and a substantial drop in plant realisation, India Cements Ltd has posted a net loss of Rs 22.53 crore for the quarter ended September 30 against a net profit of Rs 49.08 crore in the year-ago period.
Total income stood at Rs 1,093.78 crore during the period compared with Rs 1,125.68 crore in the last corresponding quarter, the Chennai-based company said.
Sales volume was marginally lower at 2.44 million tonnes (mt) against 2.48 mt.
N. Srinivasan, Vice-Chairman and Managing Director, told reporters cement demand continues to be subdued resulting in a substantial drop in selling prices. The average net plant realisation was down 12 per cent at Rs 3,090 a tonne during the quarter compared with Rs 3,529 a year ago.
An increase in fuel and power costs and foreign exchange fluctuation, which resulted in a charge of Rs 24 crore, have also adversely impacted the performance. The industry is facing a huge over-supply in the absence of any growth in demand. After seeing demand grow at 8-10 per cent over three decades, cement makers are now grappling with a demand slowdown in the last couple of years as Indian economy is also slowing down.
On Thursday, the company’s scrip shed 5.64 per cent to close at Rs 52.70 on BSE.
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