India Cements reports 4Q turnaround

India Cements has reported a turnaround in its results for the quarter ended 31 March 2015, which saw net profit at Rs.36.6 crore against a loss of Rs.157.1 crore in the same quarter last year. The improvement has been attributed to better cement prices, with net plant realisation at Rs.3880 per tonne from Rs.3057 per tonne in the same period of 2014. This offset the increase in input costs and resulted in improved EBITDA of Rs.200 crore, from Rs.119 crore in 4Q14. EBITDA margin increased substantially to 19% from 10.27% a year earlier. Interest and other financial charges were higher, depreciation was lower, and total income decreased 7.2% to Rs.1043.1 crore from Rs.1124.7 crore in the March 2014 quarter.

The Chennai-based company, which has around 7.3 million t capacity in four plants across Andhra Pradesh and Telangana (15.5 million t capacity across India), is reportedly expecting a 5% increase in cement demand in the south of India, having already received enquiries from the Andhra Pradesh government for nearly 2 million t of cement for housing and irrigation projects. Further demand is set to come from the project to build a new capital for Andhra Pradesh.

Edited from various sources by Katherine Guenioui

Sources:

• Business Standard
• Live Mint
• The Hindu Business Line 
• NDTV

Read the article online at: https://www.worldcement.com/asia-pacific-rim/01062015/india-cements-reports-4q-turnaround-931/