India Cements expects better growth this financial year

By: | Published: August 30, 2016 6:29 AM

With the demand in the southern region picking up coupled with the introduction of new cement varieties, cost cutting exercises and higher exports to neighbouring countries, India Cements is set for a better growth during the current fiscal, said N Srinivasan, vice-chairman & managing director during the 70th AGM of the India Cements on Monday.

The company said that it will focus on reducing debt by R300 crore during the fiscal. (Reuters)The company said that it will focus on reducing debt by R300 crore during the fiscal. (Reuters)

With the demand in the southern region picking up coupled with the introduction of new cement varieties, cost cutting exercises and higher exports to neighbouring countries, India Cements is set for a better growth during the current fiscal, said N Srinivasan, vice-chairman & managing director during the 70th AGM of the India Cements on Monday.

The company said that it will focus on reducing debt by R300 crore during the fiscal.

“Our capacity utilisation will be better than last year. The company will also continue to tap export markets for cement and clinker,” Srinivasan said.

India Cements exports about 30,000 tonne of cement per month to Sri Lanka besides 40,000 tonne of clinker.

Addressing shareholders, Srinivasan said, as part of low cost production, petcoke consumption increased to 30% last fiscal and in Q1 this year consumption of the same increased to 60%. It is expected to increase further in the coming quarters which would help save substantially in fuel costs.

Power plants of the company are operating more efficiently, he said.

Cement demand in south during Q1 grew by 7%. If this trend continues, it will help the company to further improve capacity utilisation.

It may be recalled, that despite there being a sharp drop in per tonne net plant realisation, India Cements had reported a 16% increase in its net profit for the quarter ended June 30 to R44 crore.

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