HeidelbergCement India reported a negative July – September quarter due to higher finance costs and depreciation and amortisation charges. The company, which recorded Rs.7.5 crore net profit in the same quarter last year, reported an Rs.28.35 crore loss after total expenses rose to Rs.314.43 crore.
Finance costs rose significantly, coming in at Rs.30.25 crore, up from Rs.2.33 crore last fiscal. Likewise, depreciation and amortisation expenses were substantially up and freight costs also rose from Rs.33.49 crore to Rs.41.24 crore.
Total income for the quarter reached Rs.301.75 crore, up from Rs.256.32 in the July - September 2012 quarter. The company recently sold its grinding unit in Raigard to JSW Steel and currently has a cement production capacity of just over 5 million tpa in India.
Gujarat Sidhee Cement also reported a loss in the quarter, falling to negative Rs.61.67 million compared with a profit of Rs.87.66 million in the September quarter last year. Net sales were down almost 16% y/y at Rs.881.40 million from Rs.1049 million.
Elsewhere in India, it has been reported that Suman Mukherjee, CEO and Managing Director of Shree Digvijay Cement Company has tendered his resignation, citing ‘personal reasons’. The resignation will be effective from the end of this month, at which point he will cease to be a member of the board of directors.
Edited from various sources by Katherine Guenioui
Read the article online at: https://www.worldcement.com/asia-pacific-rim/18102013/quarterly_losses_for_indian_cement_producers_307/