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India Cements reports ₹218 cr loss in Q4; to monetise 600 acres

India Cements has “skipped” dividend payout in FY23, after a long time, despite the availability of reserves.

India Cements reports ₹218 cr loss in Q4; to monetise 600 acres
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CHENNAI: The “extraordinary tsunami” in the form of rising raw material costs of coal from $60 per tonne to $300 per tonne and pet coke have dealt a massive blow to India Cements, which has reported a loss of Rs 218 crore for the quarter ended March (Rs 24 crore).

But the cement major is confident of break even or posting a marginal profit as portended by the current demand scenario. It is “on the verge of monetising” a tiny portion of its huge 26,000-acre land bank also.

N Srinivasan, VC-MD, India Cements, did not beat around the bush. Talking to the media post the release of the audited financial results for the year ended March 31, 2023, he said the cost per kilo calorie of fuel was severe as it raced from Re 1 to Rs 3 per kcal, forcing an “extraordinary situation” that impacted cement production. Its total comprehensive loss for the year stood at Rs 188 crore against an income of Rs 231 crore in the previous year.

Besides the turnover hit, the pressure from the Competition Commission of India also played its part. However, the cement baron was quick to accept that the competitors had done much better. “Even in the best of times, the Rs 300 difference in variable cost between us and competition was difficult to digest,” he said.

Acknowledging the “unbelievable” performance of his competitor, Srinivasan said it is like comparing David with Goliath as India Cements did not hold any chance owing to the prevailing situation. However, it has seen its sales performance peak in February and March from a “poor” record in January this year.

Sales from 1.50 lakh tonnes rose to 3 lakh tonnes, thereby reflecting the demand buoyancy.

Srinivasan said it is close to disposing 600 acres in Tirunelveli for about Rs 1,300 crore that would be used to retire its Rs 500 crore debt plus interest repayment apart from meeting working capital requirements and improving operational efficiencies.

“We are confident of achieving breakeven with increased sales in next quarter or posting a marginal profit this financial year,” he said, noting that all efforts were directed to bring the current variable cost of Rs 3,300 to Rs 2,900 within two months. Total debt of India Cements as on March 31, 2023, is at Rs 2,900 crore.

The company has received the reports of consultants for the refurbishment excercise of its plants and it is also evaluating waste heat recovery process and other cost-saving mechanisms at its plants.

Incidentally, leveraging the Chennai Super Kings branding has resulted in a 6 per cent surge in sales from new products for the whole year, said Parthasarathy Ramanujam, CMO, India Cements. The marketing network has been beefed up by adding 640 dealers in FY23 taking the overall count to 4,000.

India Cements has “skipped” dividend payout in FY23, after a long time, despite the availability of reserves.


  • Q4 revenue from operations up Rs 1,460 crore (Rs 1,392 crore)

  • Cost of materials increased by 7% to Rs 259 crore

  • Clinker production rose 8% to 72.98 lakh tonnes

  • Overall sales surged to 98.93 lakh tonnes (90.70 lakh tonnes)

  • Cost per Kcal of fuel up from around Rs 1.85 to Rs 2.90

  • Average rate of power up from Rs 5.20 per KWH to Rs 7.04 per KWH

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