CHENNAI: Even as India Cements is continuing its efforts to monetise non-core assets, mainly the vast tract of surplus, it has started recovering the advances given to group companies as part of augmenting its working capital needs.
N Srinivasan, vice-chairman -MD, India Cements, told media persons on Wednesday that this year it has recovered about Rs 115 crore advances from group companies and it hoped to recall more amount for easing its liquidity position and meeting operational requirements. It needs Rs 250 to Rs 300 crore of working capital.
He said the company was looking at monetising the surplus land and it also succeeded in selling a portion of the land parcel in Andhra Pradesh. But, “We have found the sale of lands takes time due to various reasons. Therefore, we looked at other options and started recovering advances given to group companies.’’
India Cements has not recognised the profit on sale of land amounting to Rs 42.81 crore in its Q2 results on the sale of 73.75 acres and receipt of the entire condition primarily due to the condition that it has to be converted into industrial land from its current classification.
Over the years, India Cements has given loans and advances to associate companies and subsidiaries like Coromandel Sugars (having its sugar plant in Karnataka) and India Cements Infrastructures Ltd.
During the quarter ended September 30, 2023, the company has reported a lower net loss of Rs 81.39 crore compared to a loss of Rs 137.58 crore in the same quarter last year. Total income came to Rs 1,228 crore (Rs 1258 crore).