CHENNAI: With the improved sales volume, India Cements Limited could turn out a better operating performance and pared the losses for the 4th quarter under review.
The company has taken lot of efforts in improving the liquidity resulting in improvement in positive
EBIDTA quarter after quarter and has made a cash profit of Rs.8 crores for the quarter, a press release from India Cements said here on Monday.
Together with the profit arising from the sale of land, the company has made a cash profit of Rs.24 crores for the quarter despite the setback caused by fall in selling prices of cement.
The EBIDTA for the quarter excluding exceptional item was around Rs.72 crores as against the negative EBIDTA of Rs.26 crores in the same quarter of the previous year and was marginally
higher by Rs.6 crores when compared with the 3 rd quarter of the current year.
The year under review witnessed a yoyo in growth in cement demand with sharp downward and upward movements in the various quarters.
As per information published by DIPP for the year ended 31st March 24, the overall growth in cement demand for the year was a moderate 9.1% while it was more than 13% in the first half of the year implying a lower growth in the second half of the fiscal.
The demand growth was varying in different regions with south still lagging behind with a lower capacity utilization of around 65% as compared to all India capacity utilization of more than 75%.
While there was free fall in the prices of cement in the first 2 quarters, same showed signs of improvement in the 3rd quarter, but slipped again in the 4th quarter impacting the margins of the industry in general.
The silver lining was that the cost of fuel remained stable and was lower compared to its peak level witnessed in the earlier years, the release said.
After muted capacity utilization in the previous 2 quarters caused by the stressed working capital conditions, the same could be improved in the 4th quarter due to infusion of working capital and it was 63% from 51% in the 3 rd quarter of the current yea