India Cements, a major cement producer in south with increasing presence in the north, on Thursday reported a 38.3 per cent lower net profit for the quarter ending December, 2010. The company’s net profit for the three-month period ending December 31, 2010 was INR21.47 crore against INR34.8 crore reported in the corresponding quarter of the previous year.
India Cements’ net sales for the third quarter of the present financial year too was marginally down at INR780.99 crore against INR864.12 crore indicating a decline of over 9.6 per cent.
“From reporting a loss in the previous quarter, we are back in the black. It is very significant, given the present market situation, especially in the South,” N Srinivasan, vice-chairman and managing director of India Cements, said.
As against positive growth, ranging between 9.7 per cent and 11.7 per cent in the west, central and eastern regions of the country and also a 2.5 per cent growth witnessed in north, the south market for cement reported a negative growth of 2.2 per cent during the quarter. As a result, the capacity utilisation of the company’s plants were around 60 per cent.
“When the demand picks up, the capacity utilisation too will pick up. However, the price realisation during the quarter was higher at INR2900/t of cement, against INR2200 in the preceding quarter of the present financial year. This enabled us to make a profit, despite lower volume,” Srinivasan said.