Companies

India Cements more than doubles its Q1 profit at ₹37 crore

Our Bureau Chennai | Updated on August 11, 2021

Revenue from operations grew to ₹1,022 crore as against ₹757 crore

India Cements has more than doubled its standalone net profit at ₹37 crore for the quarter ended June 30 compared with the net profit of ₹17 crore in the year-ago quarter, which was hit by the first wave of pandemic.

However, this June quarter profit was lower than preceding quarter’s (March 2021) net profit which stood at ₹72 crore.

The net plant realisation for Q1 of this fiscal was lower than the last year by 7 per cent due to mix of sales as home markets were affected badly but it was higher when compared to the sequential quarter by the same 7 per cent, according to a company statement.

The EBIDTA stood at ₹165 crore as compared to ₹159 crore in the year-ago quarter, helped by increased volume amid drop in net plant realisation and increased cost pressure.

India Cements’ revenue from operations grew to ₹1,022 crore as against ₹757 crore. Total expenses stood at ₹969 crore when compared with ₹734 crore in Q1 of previous fiscal.

Higher production

The company’s cement production was higher at 18.88 lakh tonnes (13.43 lakh tonnes) and overall volume (including clinker) was at 19.45 lakh tonnes (14.28 lakh tonnes). However, the volume was lower by nearly 35 per cent on a sequential basis.

India Cements has expanded its marketing zones to east, north-east and central India which helped in improving the volumes during these challenging times, triggered by the second wave and localised lockdowns in the main markets.

“This performance has been achieved despite the onslaught of a second wave of Covid -19 pandemic during this quarter which impacted the overall volume and in the face of severe cost pressure through increase in fuel price and continuous increase in the price of petroleum products, it said.

Published on August 11, 2021

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