Tough conditions in its main market in Tamil Nadu and overall factors that have contributed to a slowdown have hit India Cements’ performance during the second quarter of the current year.

The company reported a net profit of ₹23.67 crore on a total income of ₹1,274.90 crore for the quarter ended September 30, 2017.

This includes the figures of Trinetra Cement and Trishul Concrete Products amalgamated with the company.

During the corresponding quarter previously (prior to the amalgamation), the company reported a net profit of ₹62.41 crore on an income of ₹1,314.44 crore.

N Srinivasan, Vice-Chairman and Managing Director, India Cements, told media persons the “second quarter proved more tough than we thought previously due to difficult trading conditions”.

Particularly, the drop in demand for cement in Tamil Nadu where the company sells about 40 per cent of its output was an important reason, he said.

Shortage of river sand for construction has been a primary issue, and “We are at our wits end” on how to address the market, he said. For the first time, the drop in cement demand in the State was in double digit.

Due to the challenging market conditions in Tamil Nadu, volumes had been hit. The overall volume during the quarter, including exports was 27 lakh tonnes. With slow down in Tamil Nadu, the company has diversified its markets to maintain volumes.

The increase in petcoke prices over the last one year had contributed to a cost push with prices increasing from about $40 a tonne to about $110.

The situation is far brighter in its other markets such as Andhra Pradesh, Telangan and Maharashtra where infrastructure projects are on, he said.

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