India Cements announced Q1FY23 Result : The overall clinker production of the company was up by 28% while the cement sales was up by 38% at 25.53 lakh tons as compared to 18.51 lakh tons in the previous year. The clinker sales was marginally higher at 1.19 lakh tons(0.94 lakh tons) resulting in a overall sale of 26.72 lakh tons (19.45 lakh tons)an improvement of 37%. The power and fuel cost was astronomically high with the cost of fuel climbing up from Rs.1.60 per Kcal in the same quarter of the previous year to as high as Rs.2.70 per Kcal during the quarter and own generating power cost also climbed up substantially. The increase in power and fuel cost alone was more than 54% as compared to the same period of the previous year, while the overall increase in variable cost was around 40% with marginal savings in other items of raw materials, stores, etc. It should be noted that the growth rate in cement sales for the company was marginally lesser than that of peers in the south as the company reduced its despatches to east and far off markets as the contribution was very low in the light of increased cost. While variable cost went up significantly over that of previous year, the net plant realization improved only marginally by 4% resulting in uncompensated cost increase. Such increase in variable cost alone was close to Rs.200 crores and was the primary reason for the drop in EBIDTA to around Rs.39 crores as compared to Rs.165 crores in the same quarter of the previous year. Interest charges were at Rs.59 crores (Rs.55 crores) while depreciation was at Rs.52 crores (Rs.54 crores) resulting in a loss of Rs.72 crores for the quarter as compared to a profit of Rs.56 crores in the same quarter of the previous year. After taking into account the benefit of lower taxation rate, the deferred tax liability has been recomputed. Hence, the profit after tax, taking into account the revised deferred tax computation was Rs.76 crores for the quarter as compared to Rs.37 crores. After recognizing other comprehensive items, the total comprehensive income for the quarter was at Rs.80 crores as compared to an income of Rs. 38 crores in the previous year Result PDF
India Cements declares Q4FY22 result: The variable cost of production during the quarter had gone up by 33% as compared to previous year while the net plant realization could pick up only by 6.8% during the corresponding period resulting in erosion of margin. The increase in Variable Cost could not be passed on to the marketfor reasons already stated. The unrecovered increase in the variable cost alone resulted in a loss of contribution of over Rs.500 per ton or aggregating to approximately Rs.135 crores which was the primary reason for the reduction in EBIDTA. This was further compounded by the loss of volume. However, with a tight control on fixed cost and administrative overheads and marketing overheads, the company could still achieve an EBIDTA of Rs.66 crores as compared to Rs.212 crores as compared to corresponding quarter of the previous year. Interest charges were lower at Rs.48 crores (Rs.53 crores) while depreciation was at Rs.54 crores (Rs.61 crores). The resultant loss for the quarter was at Rs.36 crores as compared to profit before tax of Rs.98 crores during the same quarter of the previous year. For the year ended 31st March’22, the EBIDTA was at Rs.478 crores a drop of 42% as compared to Rs.829 crores in the previous year and the Profit before tax for the year was at Rs.54 crores as compared to Rs.323 crores in the previous year. Result PDF