Leading cement manufacturer India Cements Ltd, has recorded a slip in its standalone net profits for the quarter ending June 30, 2018 to Rs 21.03 crore.
Noted industrialist N Srinivasan led firm had recorded net profits at Rs 26.44 crore during corresponding quarter of previous year.
For the year ending March 31, 2018, net profits of the company stood at Rs 100.62 crore, the city-based company said in a BSE filing.
Total income for the April-June quarter declined to Rs 1,366.17 crore from Rs 1,466.75 crore registered during year ago period.
For the year ending March 31, 2018 total income of the company was at Rs 5,360.13 crore.
In a statement, the company said despite a drop in selling prices of cement it witnessed an increase in volume coupled with stringent control on fixed cost and selling expenses.
"The operating performance of the company during the quarter had substantially improved with capacity utilisation (of the manufacturing facilities) to 80 per cent as compared to 67 per cent recorded during same quarter of previous year," it said.
The company said the bottom line revenue had an impact of Rs 104 crore during the quarter following the steep drop in the net plant realisation.
"Despite the lower net plant realisation and higher variable costs, with the increase in volume and reduction in fixed cost, the company could turn out an EBIDTA (Earnings Before Interest, Taxes, Depreciation and Amortization) of Rs 162 crore as against Rs 191 crore in previous year".
On the outlook for the coming quarters, the company said, "after several years of sluggish and nil growth, the demand for cement is growing sharply on the back of infrastructure projects, roads, dams."
It is expected that this trend would gain momentum during the current financial year, the statement added.
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