The India Cements Q2FY22 Results: Net profit down 57% to Rs 32.53 cr
The India Cements production during the quarter improved by 8 per cent, the company said in a post earning statement.
The India Cements Ltd on Wednesday reported a 56.8 per cent decline in its consolidated net profit to Rs 32.53 crore for the second quarter ended in September 2021 on account of inflationary pressure and extended monsoon and floods in some of its core markets.
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The company had posted a net profit of Rs 69.21 crore during the July-September quarter of the previous fiscal, India Cements said in a regulatory filing.
Its revenue from operations was up 13.29 per cent to Rs 1,234.85 crore during the quarter under review as against Rs 1,089.96 crore in the corresponding period of the previous fiscal.
The India Cements production during the quarter improved by 8 per cent, the company said in a post earning statement.
India Cements Limited has turned out a satisfactory performance for the quarter ended 30th September 2021 considering the impact of extended monsoon and floods in some of its core markets and the continued impact of Covid-19 pandemic second wave in Kerala and Tamil Nadu,? it said.
This quarter also witnessed cost pressure through increase in the price of fuel and petroleum products, it said.
However, the company could turn out a reasonable performance through an increase in volume in the extended marketing zones,? said The India Cements.
Total expenses were at Rs 1,201.61 crore, up 22.51 per cent in Q2/FY 2021-22, as against Rs 980.83 crore.
Over the outlook, the company said there are reports of economic recovery gaining momentum in terms of various high-frequency economic indicators besides the pick up in consumption and investment demand.
"At the same time, the risk of cost pressure is staring at the industry due to the high cost of fuels and petcoke and the constraints in the availability of coal. All these are expected to put pressure on output and earnings margins in the coming months," it said.
Shares of India Cements Ltd on Wednesday settled at Rs 210 on BSE, down 5.81 per cent from the previous close.
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