India Cements reports fifth consecutive quarterly drop in net profit

India Cements reports fifth consecutive quarterly drop in net profit
14 August 2013


India Cement has reported its fifth consecutive quarterly drop due to forex losses and a lower pricing environment.

Net profit for the first quarter of the current fiscal declined by 72 per cent to INR16.82 crore. N Srinivasan, vice chairman and managing director, India Cements Ltd said: “The exchange translation charges due to unprecedented rupee depreciation impacted to the tune of INR27 crore resulting in net profit before tax of INR26 crore.”

The company also saw a drop in prices during the quarter due to excess capacity in the southern market. Average net realisation during the quarter was lower by 10 per cent at INR3,185/t against INR3550/t. There was a big drop in prices in May which has since stabilised and started rising," Mr Srinivasan added.

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Tagged Under: Pricing India India Cements