Despite revival in demand, cement companies are not able to reap benefits due to rising input costs. Chennai-based India Cements that posted March quarter numbers on Monday, has also blamed higher interest and depreciation costs for a 60 percent decline in Q4 profit.
In an interview with CNBC-TV18, VM Mohan, Joint President - Corporate Finance, India Cements said, excise duty went up by 7 percent impacting net plant realization which declined 6.5 percent year-on-year to Rs 3,248/tonne. Simultaneously, power cost went up 8 percent to Rs 341 crore along with 30 percent rise in transportation cost, that dented profit further. To deal with fuel scarcity issues, the firm has started to import fuel from its coal mine in Indonesia for which the first shipment will arrive into India by this month. The company has 180 megawatt of captive power in Tamil Nadu and Andhra Pradesh and another 20 MW in Rajasthan. Read This: India Cements Q4 net down 60% on higher power cost Like its peers, India Cements is also gearing up for revival in demand on the back of elections to be held across states in 2014. It will also be benefitted if the Reserve Bank of India cuts interest rates next month, which will boost infra spend by corporates. _MOREUPDATES_Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
