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The company had posted a net profit of Rs 83.83 crore during the April-June quarter a year ago, India Cements Ltd (ICL) said in a regulatory filing.
Its revenue from operations fell 5.12 per cent to Rs 1,436.74 crore during the period under review as against Rs 1,514.35 crore in the corresponding quarter of previous fiscal.
“The selling price of cement was lower during the quarter under review due to severe competition caused by supply overhang. There was a reduction in variable cost during the quarter on account of softening of fuel prices,” ICL said an earnings statement.
The reduction in variable costs was offset by the reduction in realisation resulting in lower margins, it added.
“The lower margins impacted the liquidity severely resulting in lower volume for the quarter. The overall sales volume almost remained static as compared to the first quarter of the previous year,” ICL said.
Total expenses of ICL in the April-June quarter of FY24 fell 3 per cent to Rs 1,541.09 crore.
Its cement sales for the quarter under review were 26.57 lakh tonnes as compared to 27.85 lakh tonnes in the previous quarter.
“With the increase in fixed power demand charges, salaries and wages and advertisement expenses and with the volume remaining constant as that of the previous year, the EBIDTA was lower at Rs 12 crore for the quarter as compared to an EBITDA of Rs 39 crore in the previous year,” it said.
Interest and other charges were at Rs 58 crore while depreciation was at Rs 53 crore compared to Rs 52 crore and the resultant loss before tax was Rs 99 crore.
“The reduction in selling price and loss of volume mainly contributed to this situation,” it said.
ICL’s total income in the June quarter was at Rs 1,443.87 crore, down 5.29 per cent.
The Chennai-based company has planned to monetise some of the non-core assets to improve the liquidity for improving the operating performance as well as meeting some of the minimum capital expenses.
Over the outlook, ICL said, “With normal rainfall forecast during the current south west monsoon and the thrust given by the Centre and state governments, the demand for cement is expected to be good.”
Shares of The India Cements Ltd on Monday settled 3.85 per cent lower at Rs 215.95 apiece on the BSE.
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