India Cements net profit on a standalone basis more than doubled to Rs 37.4 crore in the first quarter of FY22 from a year earlier as revenue from operations increased.
The company had reported earnings of about Rs 17 crore in the three months ended June 2020. Revenue from operations climbed to Rs 1,022.5 crore from Rs 757 crore in the year-ago period, India Cements said in a stock exchange filing on August 11.
Earnings before interest, taxation, depreciation and amortisation rose to Rs 165 crore from Rs 159 crore on higher volumes even amid a drop in net plant realisation and increasing cost pressures. Interest and other charges declined to Rs 55 crore from Rs 73 crore earlier. Depreciation stood at Rs 54 crore compared with Rs 60 crore.
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Net plant realisation for the quarter was 7 percent lower than a year earlier, but higher than in the quarter ended March 2021. The variable cost of production rose 3 percent from a year earlier and 2 percent from the preceding quarter.
The company’s cement production rose to 1.9 million tonnes during the first quarter from 1.34 million tonnes and overall volumes were 1.94 million tonnes (1.43 million tonnes).
India Cements said the impact of the second wave of the Covid-19 pandemic was limited, with only a few states affected.
“Cement prices also sustained during the quarter under review, ensuring a reasonable bottom line for the industry, which is yet to reach its normalcy in production. Unlike the earlier wave, the second wave has impacted only a few states and there is optimism prevailing for a V-shaped recovery in the economy, which is expected to clock a growth of more than 9 percent during the current year,” India Cements said in a statement.
The company said it was “cautiously optimistic” about the immediate future because of a predicted third wave.
The work-from-home and work-from-anywhere concept, according to the company, remains popular in urban and semi-urban centres.
“This, along with the thrust on affordable housing, reduction in home loan rates, income tax rebates and lower property taxes in some states, has led to pick-up in new house building, renovation of homes and construction activity,” India Cements said.