 "India Cements Q2 rises to Rs 41.04 crore")
N Srinivasan, vice chairman and managing director, said the performance backed by improved operating parameters and financial discipline.
Prices are holding, company managed to save cost. Variable cost reduced to Rs 2,022 per tonne during the quarter ended September 2015 from Rs 2,190 per tonne during the quarter ended June 2015.
Total Income was Rs 1,082.3 crore for the quarter ended September 30, 2015 where as the same was at Rs 1,135.8 crore for the quarter ended September 30, 2014.
Improved earnings helped to reduce debts and thus interest cost. Reduction in term-loans brought down interest charges to Rs 89 crore as against Rs 101 crore depreciation too was lower at Rs 55 crore as compared to Rs 66 crore for the same quarter last year.
Debt level reduced by Rs 200 crore to Rs 3,005 crore, said Srinivasan.
Net plant realisation for the company during the second quarter was Rs 3,887 per tonne as compared to Rs 3,506, a year ago.
However it was slightly lower than first quarter, which was at Rs 3,930 a tonne.
While sales volume is a function of demand, company could maintain better realisation over the last three quarters.
On the outlook, Srinivasan said, stability in macro economic conditions and Government effort to increase public spending, should help investment in real estate and infrastructure. RBI initiative to further cut interest rates for easing finance cost, too should help boost economic activity in turn consumption of cement.
On South demand, he said, company expect pick up in construction activity, driven by more investments envisaged on infrastructure development, industrial growth in Tamil Nadu and building of a new capital in Andhra Pradesh.
"We take a cautious but optimistic view for cement demand to pick up in the coming months," said Srinivasan, who was hopeful that company's current capacity utilisation is around 60 per cent.
As per the condition imposed by Board of Control for Cricket in India (BCCI), The India Cements Limited (ICL) provided a guarantee for the purpose of guaranteeing performance/ compliance by Chennai Super Kings Cricket Limited (CSKCL) of the obligations of the Franchise under the Franchise Agreement.
Consequent to hiving off the Franchise of IPL, the figures of the current quarter are not comparable with those of previous quarters/year, said the company.
