India Cements PBT drops 75% to Rs 26 cr in Q1, income almost halves

Firm says given the current pandemic situation and the plight of the construction industry, the firm's performance can be considered as good

India Cements' profit before tax (PBT) dropped by 75.26 per cent to Rs 26.06 crore during the quarter ended June 30, 2020 from Rs 105.35 crore during the same period last year. The company's total income dropped to Rs 760.32 crore from Rs 1,472 crore. 

N Srinivasan, vice chairman, India Cements said that given the current pandemic situation and the plight of the construction industry, the performance of the company can be considered to be good. 

The company's EBITDA margin was 20 per cent during the quarter, the highest in the last several years. Net Plant Realisation (NPR) was at Rs 4,235 per tonne during the quarter as compared to Rs 3,654 a year ago.

Prices and the comppany's Cash-&-Carry policy have improved its profitability and liquidity.

"With improved selling prices and with control on distribution costs, the plant realisation increased by 16 per cent during the quarter. The drop in volume alone had accounted for a contribution loss of more than Rs 216 crore," he said. However, with the improved realisation and reduction in overall expenditure, the EBITDA was at Rs 159 crore as compared to Rs 245 crore in the previous year.

The company also took proactive steps in containing the expenditure given the pandemic situation through reduction of fixed cost on contract labour, administrative and marketing overheads along with improvement in the operating parameters, said Srinivasan.