Millennium Post

India Cements swings into red with Rs 2.96-cr Q1 loss

The city-based company had reported a net profit of Rs 16.82 crore in the corresponding quarter
a year ago.

Announcing the quarterly results, India Cements Vice- Chairman and Managing Director N Srinivasan said there has been ‘sequential improvement’ on the recovery in selling prices in June as the severe cost push resulted in marginal loss for the quarter.

‘Demand (for cement) overall in North has grown but in South it has remained flat. The industry had to bear the cost imposed through increase in freight charges, transportation could not be passed onto the consumers’, he told reporters here.

For the financial year ending 31 March, 2014,  the net loss of Chennai-based company stood at Rs 35.85 crore.

Total income for the first quarter ending 30  June, 2014 stood at Rs 1,228.44 crore as against Rs 1,240.87 crore registered during the same period of previous year.

For the financial year ending March 31,2014 the total income of the company stood at Rs 4,497.93 crore.

To a query, Srinivasan said the net plant realisation improved marginally during the period under review by three per cent at Rs 3,293 per tonne as against Rs 3,185 per tonne during the same period of previous year.

Net plant realisation for the quarter improved by eight per cent to Rs 3,293 per tonne as compared to fourth quarter of last financial year at Rs 3,057 per tonne.

‘We have to wait and see. For the next six to nine months, nothing much may happen,’ he said, responding to a query on whether demand would pickup in the coming months.

Trinetra Cement Ltd which was merged with India Cements had reported net profits at Rs 10.37 crore for the quarter ending June 30, 2014 as against a net loss of Rs 5.20 crore registered during the same period of previous year.

Trinetra Cement Ltd and Trishul Concrete Products Ltd were merged with The India Cements Ltd, early this year. On the outlook, he said the bifurcation of Andhra Pradesh has raised hopes for renewed economic activity under the new governments in Andhra Pradesh and Telangana.
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