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India Cements’ net profit in the second quarter of the current year has multiplied more than five times, over the comparable quarter in the previous year.
Stable prices and volumes, along with a steady “shaving of costs”, particularly fuel and power, have contributed to the growth in net profit, said N Srinivasan, Vice-Chairman and Managing Director of India Cements.
India Cements has reported a net profit of ₹41.04 crore (₹7.49 crore) on a total income of ₹1,082.37 crore (₹1,135.85 crore) for the quarter ended September 30.
Power and fuel costs were down at ₹220.20 crore (₹265.13 crore) and finance costs were lower at ₹89.39 crore (₹100.67 crore).
Srinivasan was optimistic on the immediate outlook, particularly with work on Amaravati, the new State Capital of Andhra Pradesh, set to pick up pace. While the third quarter is generally a slow one in the South because of the North-East Monsoons, demand could pick up subsequently, he hoped.
A pick-up in construction activity, investments envisaged in infrastructure, and industrial development in Tamil Nadu, will all support demand, he felt.
However, overall market conditions continue to remain sluggish, he added.
On the BSE the company’s shares of ₹10 closed at ₹83.60, up 7 per cent over the previous close of ₹78.30.
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