India Cements posts net loss of Rs 30.6 cr in Q4

The total income dropped by six per cent compared to same quarter of previous fiscal year

India Cements Ltd has posted a net loss of Rs 30.56 crore for the quarter ended March 31, 2014, as against a net profit of Rs 26.28 crore for the corresponding quarter of previous fiscal year. The total income dropped 6% from Rs 1,199.03 crore for the quarter ended March 31, 2013, to Rs 1124.7% during the same quarter this year.

N Srinivasan, vice chairman, India Cements said that with a steep fall in the sales realisation for cement together with the cost push and with a loss on sale of one ship it has reported a loss of Rs 31 crore for the quarter and a profit of Rs 11 crore for the year under review before the exceptional items.

Net plant realisation was lower by 6% at Rs 3,057 crore for the quarter as compared to Rs 3,250 crore in the same quarter last year. The price realisation will be maintained for now, and depending on the demand, it will increase further, he said.

The current capacity utilisation is around 70% in South, while company's plant in Rajasthan, which caters to North India, the utilisation is around 98%. He added that during the second half of the current year demand will pick up and there is a lot ot expectation from the new Government.

The revenue from Indian Premier League (IPL) Chennai franchisee, Chennai Super Kings (CSK), has increased to Rs 166 crore in 2013-14 from Rs 136 crore in 2012-13.

Interest charges were higher at Rs 79 crore against Rs 64 crore, while the depreciation was maintained as that of previous year at Rs 72 crore resulting in a loss of Rs 31 crore before exceptional items against a profit of Rs 41 crore in the previous year.

During the quarter the company had exited from CDR mechanism and the cost associated with such exit amounting to Rs 57.13 crore has been treated as an exceptional item.

The other operating income of Rs 44.61 crore durng the quarter, compared to Rs 8.39 crore for the same quarter of last year, includes sale of assets of Rs 17.43 crore comprising of loss on sale of ship of Rs 31.91 crore and profit on sale of land of Rs 49.34 crore, for which clearance from one of the charge holders is yet to be obtained.

The company has also deposited Rs 18.75 crore, based on the interim order passed by the Tribunal as a condition precedent for grant of stay, related to the Competition Commission of India (CCI's) order imposing a penalty of Rs 187.48 crore alleging contravention of the provisions of The Competition Act, 2002, the company, along with other cement manufacturers. The company approached the Competition Appellate Tribunal with an appeal and the interim order asked it to pay Rs 18.75 crore as a condition precedent for grant of stay.