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India Cements has reported a 69 per cent drop in its net profit to ₹22 crore for the quarter ended September 30, 2021 as compared to net profit of ₹71 crore in the year-ago quarter, mainly due to cost pressures despite increase in revenue.
Its revenue from operations grew to ₹1,235 crore as against ₹1,090 crore, an increase of 13 per cent.
Power and fuel cost was significantly higher at ₹359 crore as against ₹230 crore, while transportation and handling charges increased to ₹277 crore as compared to ₹215 crore.
Overall, total expenses were higher at ₹1,201 crore when compared with ₹981 crore in Q2 of previous fiscal.
Profit before exceptional items and tax stood at ₹29 crore against Rs.₹110 crore in September 2020 quarter.
Meanwhile, industry analysts said that there was a demand pick up in October and cement prices have also increased 7 per cent month-on-month and 6 per cent quarter-on-quarter.
“Rising pet coke, coal, and diesel prices would impact operating costs going forward. This should be partially offset by higher prices. In the last few days, import coal prices have softened, and the trend needs to be monitored,” pointed a report of Motilal Oswal Financial Services Ltd.
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