India Cements has reported a nearly 50 per cent drop in net profits for the third quarter ended December 31, 2008. The company has also decided to defer plans to set up one of the two production facilities it had announced in the North.
India Cements Ltd has reported a net profit of Rs 61.91 crore(Rs 127.05 crore) on net sales of Rs 863.72 crore (Rs 854.54 crore).
Mr N. Srinivasan, Vice-Chairman and Managing Director, attributed the performance to a two lakh tonnes drop in clinker production as compared to the corresponding quarter previously due to an extended shutdown of two clinker facilities.
Higher coal prices, cost of production and weakening of the rupee against the dollar have also had an impact.
The company, which had announced plans to set up two manufacturing facilities in Rajasthan and Himachal Pradesh totalling 4Mt of production capacity a year, has decided to defer one of the projects. It will go ahead with one unit of 1.5Mt, which will be in place by March 2010, he said, while declining to specify which unit would be implemented or deferred.