Affected by a sharp rise in input costs, India Cements on Thursday reported a 62% decline in its net profit for the September quarter at Rs 23.67 crore, compared with Rs 62.41 crore in the same quarter last fiscal. Revenue during the quarter fell to Rs 1,268 crore, against Rs 1,308 crore in the year-ago period. The EBITDA margin for the quarter fell to 14.8% at Rs 188 crore, compared with 19% in the same quarter last fiscal. The main reason for the sharp drop in the profit and EBITDA margin was a 6% rise in input costs.
Variable costs during the quarter under review increased by Rs 200 a tonne due to a sharp rise in imported petcoke. Prices of petcoke went up from $45 a tonne a year ago to $70 a few months ago. Prices now stand at $110 a tonne, said N Srinivasan, vice-chairman and managing director, India Cements.