India Cements posts net loss of Rs 11.7 crore

The loss is mainly due to the lower capacity utilisation

India Cements Ltd has posted a net loss of Rs 11.68 crore for the quarter ended December 31, 2014, as compared to Rs 0.42 crore net profit during the same period of previous fiscal year. The total income stood at Rs 1040.6 crore for the quarter, as compared to Rs 1038.47 crore for the corresponding quarter of previous fiscal year.

The loss is due to the lower capacity utilisation, said N Srinivasan, vice chairman and managing director, India Cements.

With the supply overhang in the south, the market dynamics has forced the industry to operate at lower capacity utilisation in the region. While the quarter witnessed the fuller impact of the cost push of earlier quarters of increase in EB tariffs and royalty, marginal relief was available through reduction in price of diesel and through further recovery in selling pricess, which together helped in mitigating the loss for the quarter, said the company.

Capacity utilisation wsa 56% compared to 63% a year ago. the net plant realisation increased on Rs 3,707, as compared to Rs 3,459 a year ago. Volume saw a dip to 20.05 mt compared to 22.37 mt a year ago, said the company.

Recovery in the selling price by way of increased net plant realisation offset the cost increase and drop in volume and resulted in an Ebidta of Rs 163 crore as against Rs 146 crore.

Interest charges were higher due to higher utilisation of working capital and one time charges and was at Rs 104 crore against Rs 80 crore while the depreciation was marginally lower at Rs 66 crore against Rs 69 crore resulting in a loss before exceptional item of Rs 7 crore, against a loss of Rs 2 crore, a year ago, said the company.

Meanwhile, India Cements Capital, a part of India Cements said that its Board of Directors has approved appointment of S Rupa Gurunath and V M Mohan as Additional Directors of the Company and V Manickam as an Independent Director in the place of N Srinivasan (F&R) who has resigned his directorship with effect from October 01, 2014.