India Cements bounces back to black, nets Rs 72 crore profit in Q4

Whereas the drop in cement quantity meant a contribution lack of round Rs 300 crore for the yr, the advance in internet plant realisation along with discount in fastened price greater than made up the shortfall, it mentioned.

India Cements on Monday reported a standalone internet revenue of Rs 71.63 crore for the fourth quarter of FY21, bouncing again from a internet lack of Rs 111.07 crore within the corresponding quarter of final fiscal regardless of disruptions as a consequence of Covid-19. The cement main posted revenue of Rs 1,461.44 crore as in opposition to Rs 1,169.92 crore.

N Srinivasan, vice chairman & MD, India Cements, mentioned the corporate might face up to price pressures by improved working efficiencies, substantial financial savings on discretionary overheads and elevated quantity, along with steady pricing of cement. For the fourth quarter, the corporate had an Ebidta of Rs 213 crore, greater than double the year-ago determine of Rs 85 crore. Given the pandemic, the efficiency of the corporate “will be thought of to be extremely passable”, Srinivasan mentioned.

The quarter underneath overview witnessed a steep rise within the costs of enter supplies like gasoline and petroleum merchandise, packing prices, one-off fastened prices in manpower, and better impression on price on account of drawal of shares.

At 29.9 lakh tonne, general quantity for This fall was 13% larger than 26.47 lakh tonne, together with clinker, recorded in the identical quarter of final yr. Whereas internet plant realisation was up 16%, variable price was considerably affected by the impression of upper enter costs of gasoline and oil, the corporate mentioned.

With cement costs choosing up in east, north east and central India, the corporate expanded its advertising and marketing zones in these locations. It continued taking steps to manage the fastened price on contract labour, administrative and advertising and marketing overheads with a complete ban on journey and by reducing down different discretionary bills.

India Cements mentioned internet plant realisation for the yr was up 12% when in comparison with the earlier yr. Variable price of manufacturing was maintained as that of the earlier yr, regardless of the upper price impression as a consequence of drawal of clinker and cement shares at larger price and enhance in the price of enter supplies. Fastened price was decrease than the earlier yr regardless of the one-off fees in salaries. Whereas the drop in cement quantity meant a contribution lack of round Rs 300 crore for the yr, the advance in internet plant realisation along with discount in fastened price greater than made up the shortfall, it mentioned.