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India Cements total income up 15%

Posted on Feb 14, 07:30PM | IBNS

Kolkata, Feb 14 : The India Cements Limited, one of the leading cement producers in the country, announced its financial results for the third quarter ended 31st December 2012 at its Board meeting held on Thursday.

Performance of Q3 for the year vs Q3 of the previous year:

Total income up by 15% at Rs.1,086 crores (Rs.946 crores)

EBIDTA maintained at Rs.196 croresVs Rs.197 crores despite high cost push.

PAT for the quarter was at Rs.26 croresVs Rs.56 crores

Performance Highlights:

Clinker production was up by 10% at 18.81 lakh tons Vs 17.13 lakh tons

The overall volume growth was up by 10% at 24.15 lakh tons compared to 21.88 lakh tons

Severe cost push experienced in the form of increased freight cost during the year caused by steep increase in freight by railways and frequent substantial hikes in the diesel prices.

With hefty power holidays in Andhra Pradesh, the higher usage of high cost purchased power to maintain production coupled with the increase in power tariffs in southern states by the DISCOMS had also its toll on the cost of operations.

The impact of such high cost could be contained with the improved volume resulting in an EBIDTA of Rs.196 croresVs Rs.197 crores.The depreciation charges were higher by Rs. 9 crores at Rs.71 croresVs Rs.62 crores. Interest charges were at Rs.71 crores as compared to Rs.65crores.

The foreign exchange translation charges resulted in a debit of Rs.11 crores during the quarter against Rs.8 crores, resulting in an overall interest and other charges of Rs.82 crores.

The taxation expenses for the quarter was also higher at Rs.17 crores as compared to Rs. 6 crores in the same quarter of the previous year resulting in Profit after tax of Rs.26 crores as compared to Rs.56 crores in the previous year.

Steps have been taken by the company to check the alarming increase in the cost of power with thermal power plant at Sankar Nagar in Tamil Nadu stabilising at better levels during the quarter under review as compared to the second quarter of the year.

The huge impact on the operations due to severe power cut in Andhra Pradesh will be minimized with the commissioning of the second power plant in Andhra Pradesh which is expected to go on stream shortly.

Commenting on the company's financial performance, N. Srinivasan, Vice Chairman and Managing Director, India Cements Ltd., said: "The company has been facing challenges operationally especially on the cost front. In spite of higher power tariff in AP & Tamil Nadu, hefty power holidays and subdued cement demand we were able to post healthy growth numbers."

Despite the subdued forecast on GDP growth in the current fiscal and the supply overhang which persists in the South, the company could register a 10% increase in volume during the quarter ended December 2012.

"Judging by volume growth witnessed in January 2013 we could reasonably expect a similar trend during the last quarter of the fiscal 2012-13," said Srinivasan.