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India Cement Raises Profit To Rs 76 Billion, Revenue To Rs 1,446 Billion

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India Cement Raises Profit To Rs 76 Billion, Revenue To Rs 1,446 Billion
13 Aug 2022
min read

News Synopsis

India Cements declared a standalone net profit of Rs 76 crore on Friday, up 105% from the first quarter of the previous fiscal's similar period of Rs 37 crore. The deferred tax liability of Rs. 148 crore was recalculated, which was the main cause of the increase. Operations revenue increased by 41%, from Rs 1,022 to Rs 1,446 crore, while total spending increased by 57%, from Rs 969 to Rs 1,526 crore. 

N Srinivasan, vice chairman and managing director of India Cements, said to the media: "The spiraling increase in the cost of input materials continued during the quarter without commensurate increase in the selling price of cement resulting in a sub-optimal performance." While the overall increase in variable costs was over 40% with marginal savings in other categories of raw materials and stores, the increase in power and fuel prices alone was more than 54%. "We were helpless to stop the assault because the primary causes are the electricity and gasoline. It was a unique circumstance, he added.

Srinivasan suggested that the business consider raising prices to cover the increased costs, although he did not provide a specific amount. Srinivasan added that the company would put aside 60 to 70 crore rupees as capital expenditures to finish modernizing the Sankarnagar cement factory, install a waste heat recovery system, and for maintenance. Even while variable expenses increased dramatically over the prior year, net plant realisation only slightly increased by 4%, leading to an uncompensated cost increase.


Since the product's launch in March, more than 1 lakh tonnes of CSK Cement have been sold, according to R Parthasarathy, CMO of India Cements. Both the CSK and HSK brands have gotten favourable reviews from consumers. The company's overall clinker production increased by 28%, and cement sales increased by 38% to 25.53 lakh tonnes from 18.51 lakh tonnes the year prior. With clinker sales slightly up at 1.19 lakh tonnes, the overall sale of 26.72 lakh tonnes increased by 37%.
 

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