15.08.2022 18:29

India Cements Q1 net profit up 103%

The India Cements Limited has posted a net profit of 76 crore for the quarter ended June 30, 2022, an increase of 103% over that of the corresponding quarter last financial year at 37.4 crore. The leading cement manufacturer is likely to effect a revision of cement prices by next week due to rise in the cost of various commodities.

The revenue from operations for the first quarter of the current financial year was 1,446 crore, as against 1,022 crore during the Q1 of FY22. The total comprehensive income for the quarter ended June 30, 2022, was at 80 crore as compared to a total comprehensive income of 38 crore during the corresponding quarter in the previous year.

After taking into account the benefit of lower taxation rate, the deferred tax liability has been recomputed, a statement said. With the company opting for rates of income tax as specified under Section 115BAA of the Income Tax Act, its deferred tax liability obligation has been recomputed resulting in a reversal of148.1 crore.

The overall clinker production of the company was up by 28%, while the cement sales was up by 38% at 25.5 lakh tonne, as compared to 18.5 lakh tonne in the previous year's comparable quarter. India Cements Limited vice chairman & MD N

Srinivasan said, "The quarter under review is unique, where the costs have shot through the roof and prices have remained stable. It is a better quarter because sales and capacity utilisation were higher, but in terms of cost it was terrible."

He further said, the company will effect an yet another price increase in the price of cement next week. Over the last couple of months, the company had already increased the prices thrice. "The price of cement has not crossed the inflation levels. So, unless we see a positive increase in price, it will be difficult."

Noting that the prices of coal was a global phenomenon, he said, its prices will not come down in the near future, which may either remain at this level or increase. "It is not the question of availability of coal, but cost of coal," he said .



Region: India
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