India Cements Ltd on Monday reported a narrowing of consolidated net loss to ₹50.06 crore in the fourth quarter ended March 31, 2024, helped by improved sales volume.

The company had posted a net loss of ₹243.77 crore in the same quarter a year ago, it said in a regulatory filing.

Consolidated revenue from operations in the quarter under review was at ₹1,266.65 crore as against ₹1,485.73 crore in the corresponding period a year ago.

"With the improved sales volume, India Cements Ltd could turn out a better operating performance and pared the losses for the fourth quarter under review," the company said.

“The cement and clinker volume for the fourth quarter was 24.36 lakh tonne as compared to 27.85 lakh tonne in the same period of the previous year,” it added.

The company has made a cash profit of ₹24 crore (including profit arising from the sale of land) for the quarter despite the setback caused by the fall in selling prices of cement.

India Cements further said after muted capacity utilisation in the previous two quarters caused by the stressed working capital conditions, the same could be improved in the fourth quarter due to infusion of working capital, and it was 63 per cent from 51 per cent in the third quarter of the current year.

Total expenses in the fourth quarter were lower at ₹1,351.84 crore as compared to ₹1,637.65 crore in the corresponding period previous fiscal.

For the fiscal ended March 31, 2024, the consolidated net loss was at ₹215.76 crore. It was at ₹169.82 crore in the previous fiscal.

In FY24, the consolidated revenue from operations was at ₹5,112.24 crore, down from ₹5,608.14 crore in FY23.

On the outlook, the company said after the Lok Sabha elections, the centre and States are expected to retain their focus on the development agenda. The construction activity is expected to be brisk in the coming months driven by continued infrastructure spending by the Government, private sector housing and commercial segments.

"This presents a healthy demand outlook for cement and the industry, especially in the South, has built adequate capacity to meet the firm demand," India Cements said.

At the same time, it said, "Increasing cost pressure, high cost of logistics and severe competition in the market are also hanging over the head which will affect the margins."

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