NE BUSINESS BUREAU
CHENNAI, MAY 20
With the improved sales volume, India Cements Limited could turn out a better operating performance and pared the losses for the quarter March 31, 2024. The net loss narrowed to Rs 29 crore in the quarter ended March 31, compared to a loss of Rs 218 crore in the year-ago period. However, the company’s net loss widened sequentially when compared to a loss of Rs 16.51 crore in the December quarter.
The loss in the current quarter marks the fifth straight loss-making quarter. The cement maker was able to cut its loss because of a tighter lid on its cost amid lower cement prices.
- The cement maker was able to cut its loss because of a tighter lid on its cost amid lower cement prices
- The company’s revenue from operations fell 14.7 percent to Rs 1,245.38 crore
- The company has made a cash profit of Rs 8 crores for the quarter under review
The South India-focused firm’s revenue from operations fell 14.7 percent to Rs 1,245.38 crore in Q4FY24 as compared to Rs 1,460.47 crore in the year-ago period.
The company has taken lot of efforts in improving the liquidity resulting in improvement in positive EBIDTA quarter after quarter and has made a cash profit of Rs.8 crores for the quarter under review. Together with the profit arising from the sale of land, the company has made a cash profit of Rs.24 crores for the quarter despite the setback caused by fall in selling prices of cement. The EBIDTA for the quarter excluding exceptional item was around Rs.72 crores as against the negative EBIDTA of Rs.26 crores in the same quarter of the previous year and was marginally higher by Rs.6 crores when compared with the 3rd quarter of the current year.
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Net Loss of India Cements reported to Rs 60.55 crore in the quarter ended March 2024 as against net loss of Rs 226.90 crore during the previous quarter ended March 2023. For the full year, net loss reported to Rs 227.34 crore in the year ended March 2024 as against net loss of Rs 126.89 crore during the previous year ended March 2023. Sales declined 8.84% to Rs 5,112.24 crore in the year ended March 2024 as against Rs 5608.14 crore during the previous year ended March 2023.
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The year under review witnessed a Y-O-Y in growth in cement demand with sharp downward and upward movements in the various quarters.
After muted capacity utilization in the previous 2 quarters caused by the stressed working capital conditions, the same could be improved in the 4th quarter due to infusion of working capital and it was 63% from 51% in the 3rd quarter of the current year. While there was further improvement in the operating performance with reduction in variable cost due to improved blending and higher capacity utilization, the selling price took a hit and the NPR had come down by nearly 7%(Rs.273/Tn) during the quarter as compared to the sequential 3rd quarter impacting the bottom line. The impact of drop in price alone was Rs.66 crores as compared to 3rd quarter.
The cement and clinker volume for the 4th quarter was 24.36 lakh tons as compared to 27.85 lakh tons in the same period of previous year and 19.85 lakh tons in the 3rd quarter of the current year. The operating parameters of power and fuel were kept under check. The EBIDTA for the quarter was positive at Rs.72 crores as compared to a negative EBIDTA of Rs.26 crores in the previous year and loss after interest and deprecation before extra-ordinary item was at Rs.49 crores against a loss of Rs.128 crores in the previous year. There was an exceptional income of Rs.16 crores representing profit on sale of land and the loss before tax was Rs.33 crores in the quarter. After tax adjustments and other comprehensive items, the loss for the quarter stood at Rs 27 crores as against a loss of Rs.219 crores in the previous year. The company has been continuing its efforts towards disposal of non-core assets and as a part of this a piece of land has been sold during the quarter and further efforts are on for selling additional surplus lands to augment cash flow requirements and for funding the efficiency improvement plans of the company.
For the year under review, the clinker production was 67.94 lakh tons (72.98 lakh tons) cement grinding was 94.31 lakh tons (97.29 lakh tons) overall volume was at 94.57 lakh tons against 98.93 lakh tons. The EBIDTA for the year without extra-ordinary item was Rs.163 crores as compared to the negative EBIDTA of Rs.140 crores in the earlier year. Interest and other charges were at Rs.240 crores (Rs.235 crores) while depreciation was at Rs.220 crores (Rs.213 crores) and after taking into account the extra-ordinary income of Rs.42 crores representing the profit on sale of ship and land, the loss before tax was at Rs.255 crores as compared to a loss of Rs.407 crores in the previous year. After tax adjustments, the total comprehensive loss for the year was Rs.200 crores against a loss of Rs.188 crores in the previous year.
