India Cements on Friday reported a standalone net profit of Rs 76 crore for the first quarter of FY23 compared with Rs 37 crore in the corresponding period of last fiscal, registering an increase of 105%. The surge was mainly due to recomputation of the deferred tax liability of Rs 148 crore.
Revenue from operations rose by 41% to Rs 1,446 crore from Rs 1,022 crore, while total expenditure went up by 57% to Rs 1,526 crore from Rs 969 crore.
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India Cements vice-chairman & MD N Srinivasan told mediapersons: “The spiralling increase in the cost of input materials continued during the quarter without corresponding increase in the selling price of cement resulting in a sub-optimal performance.”
The increase in power and fuel costs alone was more than 54%, while the overall increase in variable costs was around 40% with marginal savings in other items of raw materials and stores. “Since the power and fuel are the main cause, we could not do anything against the onslaught. It was an extraordinary situation,” he said.
To offset the rising costs, Srinivasan said the company could go in for a price hike, but didn’t mention the quantum.
Srinivasan further said the company would set aside Rs 60-70 crore as capex for the completion of Sankarnagar cement plant modernisation, setting up waste heat recovery system, and for maintenance.
While variable costs went up significantly over that of previous year, the net plant realisation improved only marginally by 4% resulting in uncompensated cost increase.
R Parthasarathy, CMO, India Cements, said the company has sold more than 1 lakh tonne of CSK Cement in three months since the launch in March. Both CSK and HSK brands have been received well in the market.
The overall clinker production of the company was up by 28% while the cement sales was up by 38% at 25.53 lakh tonne compared with 18.51 lakh tonne in the previous year. The clinker sales was marginally higher at 1.19 lakh tonne, resulting in an overall sale of 26.72 lakh tonne, an improvement of 37%.