India Cements Reports Rs 58.47 Crore Profit in Q1 FY25 Despite Sales Volume Decline
India Cements Ltd reported a consolidated net profit of Rs 58.47 crore in June 2024 quarter, despite a 26% decline in sales volume. The company's revenue from operations was down 28.53% to Rs 1,026.76 crore.
India Cements LtdUltratech CementCement IndustryQ1 Fy25 ResultsNet ProfitReal Estate MaharashtraAug 10, 2024
The company's revenue from operations was down 28.53% to Rs 1,026.76 crore during the period under review, as against Rs 1,436.74 crore in the corresponding quarter last year. However, the company's profit was boosted by the gain of Rs 240.68 crore from the sale of its grinding unit at Parli, Maharashtra, which was included as an exceptional item in the quarterly profit.
Before the exceptional items and tax, India Cements Ltd (ICL) had a loss of Rs 147.97 crore in the quarter under review. The company, which is in the process of selling its stake to rival Aditya Birla group firm UltraTech Cement, had reported a net loss of Rs 87.40 crore during the April-June quarter a year ago.
The capacity utilisation of the company was severely impacted due to the continuous liquidity crunch on account of losses sustained in the earlier quarters. The company could not take advantage of the reduced fuel cost as operating margins further shrunk on account of low volume.
The higher cost of production as compared to peers due to varying vintage of the plants together with free fall in cement prices affected the dispatch and the margins. Cement and clinker volume for the quarter was 19.61 lakh tonnes as compared to 26.66 lakh tonnes in the same quarter of the previous year with a drop of more than 26%.
The EBIDTA was accordingly negative at Rs 22 crore against a positive Rs 12 crore in last year. The interest and other charges were higher at Rs 82 crore against Rs 58 crore while depreciation was up at Rs 55 crore against Rs 53 crores and the resultant loss before extra-ordinary item was at Rs 160 crore against a loss of Rs 99 crore.
Total expenses of ICL in the June quarter were down 22.76% to Rs 1,190.24 crore. ICL's total income in the June quarter was down 27.81% to Rs 1,042.27 crore.
Over the outlook, ICL said,
Frequently Asked Questions
What is the net profit of India Cements Ltd in Q1 FY25?
Rs 58.47 crore.
What is the decline in sales volume of India Cements Ltd in Q1 FY25?
26%.
What is the revenue from operations of India Cements Ltd in Q1 FY25?
Rs 1,026.76 crore.
What is the gain from the sale of the grinding unit at Parli, Maharashtra?
Rs 240.68 crore.
What is the outlook of India Cements Ltd for the future?
The company expects rural demand to improve further and the Budget has announced huge investments in the next 5 years on infrastructure and housing projects.
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