India Cements net loss at Rs 31 cr; to consolidate operations

Hit by a slump in demand and capacity "overhang", India Cements today reported standalone net loss at Rs 30.56 crore for the fourth quarter ended March 31, 2014.
The Chennai-based company had reported Rs 26.28 crore net profit in the January-March quarter of 2012-13.
India Cements Ltd Vice-Chairman and Managing Director N Srinivasan said that "capacity overhang in South (India) continues to put pressure (on financials). In 2009, there was 24 lakh tonne demand in Andhra (Pradesh). But now it is only 16 lakh tonnes".
Net sales in Q4, 2013-14 fell to Rs 1,080 crore from Rs 1,191 crore in the year-ago period, while expenses dipped by Rs 17 crore at Rs 1,077 crore.

For the entire 2013-14 fiscal, India Cements' net loss stood at Rs 117 crore, as against the net profit of Rs 188 crore in the previous fiscal.
Net sales for the year also declined to Rs 5,085 crore, from Rs 5,159 crore in 2012-13.

"We are caught by twin factors. One is capacity overhang and slump in demand. It (demand) may not improve from tomorrow morning, we have to see at least for six months," Srinivasan told reporters here.
According to him, cement demand was better in Tamil Nadu and Kerala while it was in a slump in Andhra Pradesh.

He said fluctuation of the Indian currency against the US dollar and increase in railway freight charges put pressure on financials.