India Cements has reported ‘gratifying results’ for the third quarter of the current year, a quarter that is traditionally slow for cement due to monsoon and an uncertain market condition in the backdrop of demonetisation.

For the quarter ended December 31, 2016, the company reported a net profit of ₹35.34 crore on a total income of ₹1,270.95 crore. In the comparable quarter in the previous year, it reported a net profit of ₹3.16 crore on an income of ₹1,066 crore, a low due to the heavy rains and floods in December 2015.

N Srinivasan, Vice Chairman and Managing Director, told media persons, higher sales volumes, control on costs despite a hike in pet coke prices and financial management have contributed to the performance.

Note ban impact India Cements has not been hit by the currency shortage sparked by demonetisation – when the government pulled large denomination currencies out of circulation in November 2016. “The numbers belie the common perception that demonetisation had hit sales,” he said.

Overall sales volume, including clinker and cement exports, was up 22 per cent at 23.59 lakh tonnes (19.37 lakh tonnes).

Pet coke and imported coal price increase during the quarter had added over ₹100 to the cost of production of a tonne of cement. This was managed through control of operating parameters and flyash blending ratios. Net plant realisation had dropped to ₹3,636 a tonne (₹3,713).

India Cements is also pruning finance costs by repaying loans to cut down debt. Finance costs were down to ₹83.16 crore (₹92.16 crore).

In the current year, it will repay ₹250 crore debt matching that of last year. It has refinanced about ₹1,100 crore as an abundant caution in the prevailing uncertain market conditions. Its long term, interest bearing debt is about ₹1,900 crore and the company would like to cut this to less than ₹1,000 crore, Srinivasan said.

The company is also keen on enhancing exports and is exploring various options, he said.

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