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India Cements posts net loss of Rs 7 crore in Q3 FY24

Revenue from operations was at Rs 1,144.46 crore during the period under review. It was Rs 1,281 crore in the corresponding quarter a year ago.

The India Cements Ltd on Thursday reported a consolidated net loss of Rs 6.58 crore for the third quarter ended December 2023. The company had posted a net profit of Rs 111.22 crore for the year-ago period, according to a regulatory filing by the company.

Revenue from operations was at Rs 1,144.46 crore during the period under review. It was Rs 1,281 crore in the corresponding quarter a year ago.Total expenses were Rs 1,214.15 crore.

“The capacity utilization of the company, however, was muted on account of stressed working capital conditions and it was around 51 per cent only during the 3rd quarter as compared to 56 per cent in the same quarter of the previous year and 61 per cent in the second quarter of the current fiscal,” it said.

The cement and clinker volume for the quarter was down nearly 9 per cent to 19.85 lakh tonne as compared to 21.82 lakh tonne in the previous year.

“The variable cost was kept under check despite the lower capacity utilization with reduction in power consumption and improved usage of alternative fuels and petcoke in the overall fuel mix,” it said.

The company is continuing its efforts towards disposal of non-core assets and has also recovered Rs 455 crore of advances during April-December FY24 to augment cash flow requirements.

“The company is also in the process of raising funds for improving the efficiency of the plants and for augmenting the working capital needs,” it said.

 During the quarter, there was an exceptional income of Rs 26 crore on account of profit on sale of ship.

The Chennai-based company is monetising some of the non-core assets to improve the liquidity for improving the operating performance as well as meeting some of the minimum capital expenses.

On the outlook, the company said cement demand is expected to remain intact with a positive outlook with increasing preference for home ownership and rebuilding of homes and work places.

“The construction activity is also expected to get a fillip from increased spending on infrastructure projects by the Centre and states ahead of next Lok Sabha elections,” it added.Shares of the company on Thursday settled 7.21 per cent lower at Rs 242.50 apiece on the BSE.

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