India Cements reported slightly lower revenues for the Dec-20 quarter on consolidated basis at Rs1,184.68cr. The top line of the company was largely impacted by the lag effect of the COVID with most of the incremental demand for cement in India coming from East, Central and north India for now.
For the Dec-20 quarter, the consolidated operating profits were up 143% at Rs161.40cr. The operating profits improved on the back of lower cost of materials consumed as well as a sharp fall in other expenses as part of the cost cutting program. The operating margins or OPM expanded sharply from 5.33% in the Dec-19 quarter to 13.62% in Dec-20 quarter.
The consolidated Profit after tax (PAT) for the Dec-20 quarter turned around to a profit of Rs69.36cr from a loss of Rs9.43cr in the yoy period. However, profits were lower on a sequential basis. PAT margins obviously turned around from negative margins in the Dec-19 quarter to a positive figure of 5.85%.
Financial highlights for Dec-20 compared yoy and sequentially
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|
India Cements |
|
|
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|
Rs in Crore |
Dec-20 |
Dec-19 |
YOY |
Sep-20 |
QOQ |
|
Total Income (Rs cr) |
₹ 1,184.68 |
₹ 1,244.28 |
-4.79% |
₹ 1,089.96 |
8.69% |
|
Operating Profit (Rs cr) |
₹ 161.40 |
₹ 66.30 |
143.44% |
₹ 181.53 |
-11.09% |
|
Net Profit (Rs cr) |
₹ 69.36 |
₹ -9.43 |
N.A. |
₹ 75.38 |
-7.99% |
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|
|
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|
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Diluted EPS (Rs) |
₹ 2.25 |
₹ -0.24 |
|
₹ 2.23 |
|
|
OPM |
13.62% |
5.33% |
|
16.65% |
|
|
Net Margins |
5.85% |
-0.76% |
|
6.92% |
|
Key takeaways from the Dec-20 quarter results
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The company has some potential contingent liabilities in its statement of accounts. The Enforcement Directorate or ED has issued an attachment order for assets of Rs120cr against the company, which has been contested in court.
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In addition, India Cements, also has an order passed against the company by the Competition Commission of India or CCI worth Rs187cr for which the company has filed a counter with the NCLAT. The outcome is currently uncertain.
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