India Cements’ net loss narrowed to Rs 29 crore in the quarter ended March 31 on improved sales volume, compared to a loss of Rs 218 crore in the year-ago period, according to an exchange filing issued by the company on May 20. However, the company's net loss widened sequentially when compared to a loss of Rs 16.51 crore in the December quarter.
The loss in the current quarter marks the fifth straight loss-making quarter. The cement maker was able to cut its loss because of a tighter lid on its cost amid lower cement prices.
The South India-focused firm’s revenue from operations fell 14.7 percent to Rs 1,245.38 crore in Q4FY24 as compared to Rs 1,460.47 crore in the year-ago period.
"With the improved sales volume, India Cements Ltd could turn out a better operating performance and pared the losses for the fourth quarter under review," the company said.
The company’s stock closed 1.23 percent higher at RS 213.8 on May 17 on BSE. The stock markets are closed on May 20 on account of the Lok Sabha elections in Mumbai.
India Cements further said after muted capacity utilisation in the previous two quarters caused by the stressed working capital conditions, the same could be improved in the fourth quarter due to infusion of working capital and it was 63 percent from 51 percent in the third quarter of the current year.
On the outlook, the company said after Lok Sabha elections and assembly elections in some states, the centre and states are expected to retain their focus on the development agenda. The construction activity is expected to be brisk in the coming months driven by continued infrastructure spending by the government, private sector housing and commercial segments. "This presents a healthy demand outlook for cement and the industry, especially in the South, has built adequate capacity to meet the firm demand," India Cements said.
Meanwhile, the company also announced board’s approval of re-appointment of Chitra Srinivasan as non-executive director liable to retire by rotation with effect from 01.08.2024, the exchange filing said.
With inputs from PTI
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