India Cements has so far weathered the impact of demonetisation of high-value currency and sustained cement sales, said N Srinivasan, Vice-Chairman and Managing Director, but declined to hazard a guess on how long this can be sustained.

Interacting with media persons on the company’s performance, he said traders have adapted themselves to the situation. In the South, the company’s core market, the lion’s share of sales is through traders. The organised sector is not affected, he observed, adding: “Traders are finding a way — they use cheques or card. Up to now sales are near normal.”

The total southern region market for cement is estimated at about 50 lakh tonnes a month.

“I will not guess or comment on the future demand for cement. It also depends on the impact on other building materials like sand and aggregates.

“In any case, cement consumption will only be put off. Once new currency notes come into circulation and liquidity improves, the situation will be normal,” he said.

Second quarter results

On the company’s performance in the second quarter, he said India Cements is focussed on controlling costs, expanding to new markets and growing exports. All this has contributed to a 62 per cent jump in net profit over the comparable quarter last year.

Its net profit was ₹62.41 crore (₹38.50 crore) on a total income of ₹1,314.44 crore (₹1,229.10 crore). The company has also launched Coromandel white cement and will get into specialised products like cement for railway sleepers and oil well application, Srinivasan added.

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