India Cements posts net profit of Rs 5.46 cr for December quarter

Chennai floods hit the company's performance, even as it posted profits against a loss or Rs 11.68 crore a year ago

India Cements reported a profit of Rs 5.46 crore during the quarter that ended in December 2015 against a loss of Rs 11.68 crore, a year ago.

Total income from operations has seen a drop of 10% at Rs 937.05 crore during the quarter as compared to Rs 1,040.22 crore during the same quarter of previous fiscal year.

The quarter witnessed unprecedented rainfall followed by severe floods in Tamil Nadu which impacted the performance of the industry in general and the company. N Srinivasan, vice chairman and managing director, India Cements said that the company lost two lakh tonnes during the quarter, which impacted the bottom line.

 

He said that variable cost had come down to Rs 2,080 a tonne in Q3 from Rs 2,140, but did not reflect due to volume.

During the third quarter, capacity utilisation was around 53% — the lowest since 1989, he said. Last two quarters company has beem running its plant at around 60-62%.

"This will be one off and we expect from fourth quarter things will be better," said Srinivasan.