 "India Cements Q4 profit up 49% at Rs 51 cr")
India Cements Ltd has posted a net profit of Rs 51.21 crore for the quarter ended March 31, 2016, whereas the same was at Rs 36.60 crore for the quarter ended March 31, 2015.
Despite drop in Net Plant Realisation (NPR), company could manage to post a growth mainly due to reduction in variable cost, which dropped around 5%, said N Srinivasan, vice-chairman and managing director, India Cements.
This was mainly due to reduction in power and fuel cost which dropped to Rs 258.88 crore during the fourth quarter from Rs 273.54 crore a year ago.
Total Income rose to Rs 1,154.14 crore for the quarter ended March 31, 2016, whereas the same was at Rs 1,043.10 crore for the quarter ended March 31, 2015.
Cement volume during the quarter was at 24.03 lakh tonnes as compares to 19.98 lakh tonnes in the same quarter last year.
Net plant realisation (NPR) for the quarter was lower by 5% resulting in an EBIDTA of Rs 218 crore as against Rs 200 crore in the same quarter last year.
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Interest charges were lower at Rs 91 crore as against Rs 104 crore, a year ago while the depreciation was at Rs 52 crore against Rs 59 crore.
Srinivasan hoped that as monsoon is expected to be good and government is planning to spend money on infrastructute demand for cement will go up.
With the expected increase in public expenditure on farming irrigation, rural economy, infrastructure, roads, urban development and housing, construction activity is expected to pick up momentum and increase the demand for cement in the coming months.
He said that the company will reduce the cost further and will improve the capacity utilisation which will lead the company to report good numbers.
During the fourth quarter company's capacity utilisation was 68%, while for the year as whole was around 61%.
India Cements is planning to invest around Rs 350 crore over the next three years. Investment will be to set up grinding mill, on meeting emission norms requirements and others.