India Cements post fourth-quarter loss

India Cements post fourth-quarter loss
28 May 2014

India Cements has swung to a loss in the final quarter of the current fiscal compared to a profit last year on weak demand and overcapacity in southern markets.

The Chennai-based company reported a net loss for the January-March 2014 period of about INR31 crore, compared with a profit of INR27 crore in the comparative period of the previous year. 

"The southern market suffers from the capacity overhung. This is not the case with north and east. This has hurt realisations," said N Srinivasan, vice chairman and managing director of India Cements. He pointed out that while the company's cement plants in south are operating at 70 per cent, its plant in Rajasthan is operating at 100 per cent. Cement demand in south is expected to be subdued due to the build of excess capacity.

The company hopes for a revival in the second half and is looking to unlock value through sale of surplus land near their facilities as part of its strategy to divest non-core assets.

Earlier this week the company confirmed it would merge with subsidiary Trinetra Cement to consolidate its operations.

Published under Cement News

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