Stable cement prices and improved realisations have contributed to India Cements reporting a 15 per cent growth in net profit during the fourth quarter.
For the quarter ended March 31, 2012, the company reported a net profit of Rs 64.92 crore on a total income of Rs 1,122.95 crore.
During the corresponding quarter in the previous year, the net profit was Rs 56.31 crore on a total income of Rs 941.52 crore.
A noticeable recovery in demand and a higher average realisation during the year at about Rs 3,431 a tonne (Rs 2,661) have contributed to the improvement in performance.
Cement sales during the quarter were at 25.28 lakh tonnes (25.32 lakh tonnes).
The Cement Manufacturers Association figures show that during the last quarter the demand has grown by 10 per cent over that of the previous year, said Mr N. Srinivasan, Vice-Chairman and Managing Director, India Cements. Last year input costs had increased across the board as the cost of power, fuel and raw materials had increased.
But there is bound to be a ‘tapering of costs' in the current years as the company is securing critical costs like power and coal.
India Cements has commissioned a 50 MW coal-based power plant at its Sankar Nagar plant in January. Its captive plant in Vishnupuram is to be commissioned soon.
As grid power costs increase, the captive power plants will contribute to significant savings, he said.
The company has also invested over $20 million in captive coal mines in Indonesia which will be commissioned in the first quarter of the next financial year.
This will insulate the company from market fluctuations, he said.
During the 2011-12, the company has reported a net profit of Rs 292.97 crore (Rs 68.10 crore) on a total income of Rs 4,222.69 crore (Rs 3,540.33 crore).
The company's shares closed at Rs 87 on Wednesday down by 4 per cent on the BSE.