The India Cements has reported net consolidated loss after tax of 85.54 crore during the quarter ended September 30, 2023. It had registered loss after tax of Rs 121.10 crore in the corresponding quarter of the previous fiscal, the company said in a BSE filing.
The company’s net consolidated total income stood at Rs 1,272.41 crore in Q2 FY24, a dip of 4.88 per cent from Rs 1,337.70 crore it recorded in the similar quarter last year.
“The selling price of cement continued to be under pressure due to supply overhang and competition in the market place. However, there was substantial reduction in variable cost on account of lower fuel prices. But the varying vintage of the plants contributed for lower reduction as compared to peers and with the lower realization for cement in the market, the operating margins continued to be under pressure. The lower margins impacted the liquidity severely accounting for the lower volume as compared to peers,” the company said in a media release.
The board of directors appointed V.M. Mohan as an additional director (non-executive, non-independent director and liable to retire by rotation) with effect from November 01, 2023, Krishna Srivastava as a non-executive independent director to hold office for the first term of three consecutive years with effect from November 01, 2023 and reappointed Krishnan Skandan and Sanjay Shantilal Patel as non-executive independent director to hold office for a second and final term of three consecutive years with effect from January 27, 2024 and April 3, 2024 respectively.
“Production and sale of cement accordingly was only marginally higher by 5% as compared to earlier year. Overall volume for the quarter under review was 23.70 lakh tons as compared to 22.54 lakh tons in the previous year. The fuel cost which went up to a high of Rs.2.95 per Kcal in the third quarter of previous year came down to Rs.2.38 per Kcal in the first quarter of the current year and to Rs.2.04 in the second quarter,” it said in the media release.
For the six months ended September 30, 2023, the clinker production was maintained at 36 lakh tons while cement production was up by 5% at 50.37 lakh tons(47.86 lakh tons).
The company had stepped up the proportion of blended cement from 50% in the previous year to 56% during the first six months of the year. The operating parameters of power and fuel were kept under check despite the lower capacity utilization of around 65% only.