India Cements Q3 profit up ten-fold

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Published: January 28, 2017 5:53:10 AM

India Cements Limited has reported a 10-fold growth in its net profit for the quarter ended December to touch R35.34 crore.

India Cements Limited, N Srinivasan, demonetisation, funds, marketIndia Cements Limited has reported a 10-fold growth in its net profit for the quarter ended December to touch R35.34 crore.

India Cements Limited has reported a 10-fold growth in its net profit for the quarter ended December to touch R35.34 crore as compared to R3.16 crore reported in the same quarter last fiscal.

Following a 22% increase in production during the quarter under review, the revenue grew sharply to R1,271 crore as compared to R1,066 crore in the corresponding period last year. N Srinivasan, vice-chairman and managing director, India Cements, said, “We have not seen any impact of demonetisation as was claimed by many others in this region. Rather we produced more and sold at the same price as has been. In fact, the southern region saw a 8% growth in demand than national average of 3% and we hope to do better in Q4 too.”

“One of the main reasons for better results was decent contribution from exports of both cement and clinker,” he said adding, “The company will explore more markets to increase the capacity utilisation which now stands at 65% (53% in Q3 of FY16),” Srinivasan pointed out.

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The company has bettered its position to raise funds from the market, including through commercial papers. This could be possible as it has retired close to R500 crore (R250 crore each in FY16 and FY17) in long term debt through internal accruals. “We have substantially brought down our debt to R1,700 crore and we would continue to retire whatever we might in the coming fiscal too,” Srinivasan pointed out.

To a specific question, Srinivasan said: “Debt anything below R1,000 crore is an ideal for us to grow fast and we will strive to achieve the same.”

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