Improved realisations and a better demand have contributed to India Cements' net profit more than doubling during the third quarter of the current year as compared with the corresponding quarter in the previous year.
The net profit for the quarter ended December 31, 2011, was Rs 56.31 crore (Rs 21.47 crore) on a total income of Rs 943.95 crore (Rs 780.99 crore).
Realisations improve
Addressing media persons, Mr N. Srinivasan, Vice-Chairman and Managing Director, India Cements Ltd, said the net realisation per tonne of cement had improved to Rs 3,461 (Rs 2,904) and for the first time in several quarters the South has shown significant growth in demand estimated at about 10 per cent. While the comparison is on a low base witnessed in the third quarter of last year, “any growth is reason for optimism.”
Initial indications are that the increased demand will sustain during the fourth quarter, he said. Increasing costs including foreign exchange losses, coal price increase and increasing cost of power continue to pose a concern, he said.
The company has started trial run of a 50-MW plant at Sankar Nagar, Tamil Nadu. Another 50 MW plant will go onstream at its Vishnupuram unit in Andhra Pradesh next March, he said.
On the NSE the company's shares of Rs 10 closed at Rs 94.05 against the previous close of Rs 93.85.