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India Cements has benefitted from better realisations during the fourth quarter of 2015 when it reported a net profit compared to the loss in the corresponding quarter previously.
For the quarter ended March 31, 2015, the company reported a net profit of ₹36.60 crore (net loss: ₹157.12 crore) on a total income of ₹1,043.10 crore (₹1,124.71 crore). Total expenses have come down to ₹842.87 crore (₹1,005.89 crore).
Power and fuel costs have come down steeply to ₹273.54 crore (₹344.97 crore) and transportation and handling costs were also lower at ₹207.74 crore (₹272.92 crore).
N Srinivasan, Vice-Chairman and Managing Director, India Cements, said cement prices stabilised during the quarter and lower costs of production due to softening of fuel prices had contributed to better realisations.
However, demand continues to be slow as infrastructure demand is yet to pick up.
With an annual cement production capacity of about 15-16 million tonnes a year, the company is operating at a capacity utilisation of about 61 per cent.
But the point, Srinivasan said, is that at even this level the company was in black.
A pick up in demand will help further growth, he said.
The Centre is focussed on infrastructure development and housing which represents a long term benefit for cement sector.
The company officials said India Cements has completed the transfer of the franchise rights of India Premier League (IPL) to Chennai Super Kings Cricket Ltd, a wholly-owned subsidiary at its net asset value of ₹7.83 crore.
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