India Cements’ net profit dropped nearly 40 per cent during the first quarter of the current year compared with the corresponding quarter last year.
However, this is due to a one-time expenditure. The company has protected its margins under adverse market conditions and its operational performance has posted growth, said N. Srinivasan, Vice-Chairman and Managing Director.
The company has reported a net profit of Rs 62.07 crore (Rs 102.03 crore) on net sales of Rs 1,201 crore (Rs 1,056.82 crore) for the quarter ended June 30.
Profit before interest, depreciation, tax and exceptional items was Rs 281.42 crore (Rs 246.58 crore).
The company incurred a foreign exchange loss of Rs 25 crore and a non-recurring expenditure of Rs 20 crore for IPL franchise operations.
India Cements concentrated on maintaining its margins through appropriate cement pricing, he said. Cement production for the quarter was 23.54 lakh tonnes (23.24 lakh tonnes).
The company will take delivery of a 50,000-tonne bulk carrier, its third vessel, later this month. It will be needed to carry imported coal. The company imports nearly half its requirement of 1.2 million tonnes of coal for cement production annually.
In addition, it will need about 400,000 tonnes of coal for the two 50 MW power plants that it is setting up. One has been commissioned in Sankar Nagar, Tamil Nadu, and the other at Vishnupuram, Andhra Pradesh.