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India Cements Q3 profit down by 79pct

Infra News - Published on Thu, 14 Feb 2019

Image Source: The Hindu Business Line
Economic Times reported that India Cements reported a 79.46% fall in net profit in the third quarter ended December 2018, at INR 3.13 crore against INR 15.24 crore in the corresponding quarter ending December 2017. The company's total income was up 8.5% to INR 1,320.57 crore from INR 1,216.75 crore in the same period in 2017. The company said in a statement that the heavy competition amongst cement manufacturers for market share, increase in prices of fuel and petroleum along with the depreciation in the rupee weighed on its performance in the quarter.

India Cements' total expenses stood at INR 1,317.44 crore as against INR 1,201.51 crore in the corresponding quarter, an increase of 9.64%.

The company’s statement said that “The severe competition in the south for market share for cement due to supply overhang had its toll on the operating performance of the units in the south affecting through aberration in cement prices. Even within south, the stability of the prices varied from state to state depending upon the concentration of the units in the region. This drop in net plant realisation was compounded by the steep increase in the prices of fuel and petroleum products together with the depreciation of rupee against dollar.”

Striking an optimistic note for the quarters ahead, however, Vice Chairman and Managing Director of the company Mr N Srinivasan said that “pricing discipline has returned to the industry” amid increasing demand. The easing price of fuel will also have a favourable impact in the coming quarters, according to the company.

The company said that its primary market - Tamil Nadu was also affected with the cyclone “Gaja” devastating some of the districts during the month of November 2018. The capacity utilisation during the quarter under review was 76% as compared to 70% in the same quarter of the previous year.

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Posted By : Rabi Wangkhem on Thu, 14 Feb 2019
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