India Cements Ltd has reported a net loss of ₹24 crore for the fourth quarter ended March, as against a standalone net profit of ₹72 crore in the year-ago period due to a nearly five-fold increase in imported coal prices and losses. . of quantity.
“The Fourth Quarter was a fighting quarter,” N. Srinivasan, Vice Chairman and Managing Director.
“Coal, which we were importing, increased from $60 a tonne to about $300 a tonne. We could do nothing but sit and watch. I wanted to increase the price, but it was not possible.
Apart from this, he also said, volumes during the quarter in the south were affected by the pandemic and unseasonal rains, affecting sales in Mangaluru.
“My OPC/PPC mix also changed, affecting the cost of production. My expenses went up. To compensate for the cost increase, I increased the price per bag by ₹20, ₹15 on 1st June, 15th June and 1st July respectively And have decided to increase the price by ₹20. Others will support me or raise the price, it remains to be seen,” he said.
During the period under review, revenue from operations declined by 4% to ₹1,392 crore. ICL sold 26.29 lakh tonnes of cement (26.66 lakh tonnes) and 0.28 lakh tonnes of clinker (3.24 lakh tonnes).
Srinivasan also said that they were planning to monetise their assets to pay off the debt. “I have 26,000 acres of land in AP and Tamil Nadu. I am not a distressed seller. I have appointed a team of experts to take the decision. The money will be used to pay off debt and make some improvements to the plants.
As of March 2022, ICL had a total debt of ₹3,000 crore. In the last financial year, it paid ₹551 crore and plans to repay ₹500 crore in this financial year. There will be no change in the planned capital expenditure. He said it would be used for some balancing equipment and waste heat recovery plant in Andhra Pradesh.
On the outlook, he said Ukraine was challenged by global risks stemming from the crisis, supply disruptions, rising international energy and commodity prices, volatile crude oil prices and high inflation. The cost pressure on the industry is expected to increase with higher fuel and commodity prices as well as increase in electricity rates and logistics cost.
He said that with the housing and construction activity expected to continue and the Center and states pushing for spending on infrastructure and affordable housing, there is room for cautious optimism for cement demand in the near future.
On Friday, the board declared a dividend of ₹1 per share.