India Cements has experienced a loss in profits due to hard market conditions. According to local press reports, these include a decline in industry, lower cement prices and decreased demand for cement and building materials, especially in the south. Political upheaval is also considered to be a factor related to losses in the cement industry in the region.
- The company saw a net loss of Rs22.53 crore for 2Q13, compared to a net profit of Rs49.08 crore in 2Q12.
- Total income from operations decreased from Rs1125.68 crore in 2Q12 to Rs1093.78 crore in 2Q13.
- India cements reported a fall in price realisation. EBIDTA decreased to Rs135.52 crore, compared to Rs208.23 crore in 2Q12.
- Net plant realisation (NPR) declined to Rs3090/t from Rs3529/t in 2Q12 and furthermore fell from Rs3185/t in 1Q13.
- Net sales of the company for 2Q13 reached Rs1085.93 crore, a fall from Rs1122.67 crore in 2Q12.
Company officials stated that despite the losses experienced in 2Q13, India Cements performed relatively well considering the sluggish market conditions in the country.
Edited from various sources by Rosalie Starling
Read the article online at: https://www.worldcement.com/asia-pacific-rim/08112013/disappointing_results_for_india_cements_in_2q13_391/