India Cements posts loss

India Cements posts loss
Published: 28 July 2004

INDIA Cements Ltd has reported a loss of Rs18.10 crore on sales of Rs 312.14 crore for the first quarter of 2004-05 against a loss of Rs 24.92 crore on sales of Rs 305.58 crore for the same period last year.  For the quarter ended June 30, 2003, the company had an extraordinary income of Rs 8.25 crore representing reduction in interest charges under the debt-restructuring package relating to January-March 2003.

A company press release said the company sold 11.93 lakh tonnes of cement in the first quarter this year compared to 13.33 lakh tonnes in the same period last year. This was because cement consumption dropped by 7 per cent in the South against an all-India increase of 3.8 per cent.

The company produced 12.73 lakh tonnes of clinker against 11.08 lakh tonnes in first quarter of 2003-04 while cement production was lower at 12.11 lakh tonnes compared to 13.23 lakh tonnes for the corresponding quarter last year. It exported 2.06 lakh tonnes of clinker. The release said prospects for the industry appeared bright, as long-term growth was projected at 8 per cent to 9 per cent. The thrust on rural economy will also push up cement consumption. In addition, the export market was opening up with the Gulf emerging as a major importer.