India Cements posted a weak performance in the fourth quarter of the financial year 2022-23. The company's net loss widened to Rs 218 crore compared with Rs 24 crore in the corresponding quarter last year.
Revenue grew 5 percent year on year to Rs 1,461 crore, while at an operating level, the loss reduced to Rs 45 crore versus Rs 61 crore in the same quarter of last year. The company also noted a one-time loss of Rs 114 crore in fourth quarter.
India Cements is primarily engaged in the manufacture and marketing of cement and cement-related products. Subsidiaries and associate companies are mainly engaged in the business of sugar, power, financial services, trading, mining and transportation.
The Board of Directors has not recommended any dividend for the year 2022-2023. The fourth quarter performance has disappointed the Street and the stock is trading nearly 3 percent lower on the exchanges at 12:30 pm on May 24.
Most players in the cement sector have reported earnings for the fourth quarter and noted a significant increase in the total volume produced. However, the price has not seen much significant change. The cost is expected to remain low despite the strong volumes. Even in the month of May, when prices usually increase, there were no significant changes, and any minor changes have been rolled back.
In the second quarter, India enters into a seasonally weak period, however, earnings may surprise led by lower costs and increased consolidation. Ultra Tech, the largest player in the Indian cement industry, achieved 100 million tonnes of production, dispatches and sales in FY23. The company clocked 15 percent volume growth during the period. This was backed by an effective capacity utilisation of 84 percent capacity utilisation for the year.
First Published: May 24, 2023 1:22 PM IST
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