Indian cement manufacturer Mangalam Cement has released its results for the third quarter of the current fiscal year (ended 31 December 2013).
3Q results
- The company reported a 4.55% y/y decrease in standalone sales, which totalled Rs.1616.26 million in the third quarter, against Rs.1693.32 million in the same quarter a year earlier.
- Total expenses increased to Rs.1745.2 million from Rs.1433.97 million in the same quarter in the previous year.
- Standalone net profit for the third quarter declined by 96.63% y/y to Rs.4.69 million, compared to Rs.139.24 million in the same quarter a year earlier.
- Earnings per share witnessed a 96.55% y/y decline from Rs.5.22 in the third quarter of the previous fiscal year to Rs.0.18 in the third quarter of the current fiscal year.
Outlook
Indian cement companies are facing tough macroeconomic conditions, sluggish demand for cement, a lack of raw materials and a fall in cement prices. Due to factors such as high inflation, high lending rates and a slowdown in demand, India’s lethargic economic growth is expected to continue throughout 2014.
Adapted from press release by Rosalie Starling