The India Cements Ltd. (ICL) has posted a standalone net profit of ₹62 crore during the third quarter ended December against a net loss of ₹5.37 crore in the year earlier period, following improved price realisation and cost reduction.
“The prolonged monsoon affected the primary Southern market,” said N. Srinivasan, vice-chairman and managing director.
“But the company managed through exploring the markets in the East and Central India achieving a reasonably-improved earnings before interest, taxes, depreciation, and amortisation (EBIDTA) and profit before tax,” he added. Total income dipped to ₹1,163 crore (₹1,194 crore). The overall volume of clinker and cement contracted to 23.77 lakh tonnes (26.66 lakh tonnes).
Though volumes dropped by 11% in Q3, EBIDTA substantially improved to ₹218 crore from ₹132 crore backed by improved realisation and reduction in variable and fixed costs.
“Cement prices remained somewhat stable in some of the States, while it had undergone marginal fluctuations in some southern States but were still remunerative and higher than that of the previous year.”
He said ICL had retired about ₹300 crore debt and another ₹150 crore would be retired by end FY21.
Stating that the cash-and-carry policy adopted by the company had been yielding rich dividends, he said the company would continue with the practice.
On the outlook, he said that the economy was expected to regain lost ground and return to growth track during 2021-22 following improved prospects for rural economy, economic indicators and vaccination drive.