India Cements slips in red
Chennai: India Cements, the largest cement producer in South India by volume, said Friday that low demand, along with weak prices, pushed its quarterly performance for the period ending in December 2019 to red. The company reported a net loss of Rs 5.4 rupees compared to a net gain of Rs 3.1 rupees a year ago.
“The momentum of demand in the first quarter was not maintained. We were surprised by the pressure of falling prices, weak demand and the temptation to sell at low prices, ”said Vice President and MD N Srinivasan.
He said Andhra Pradesh has stopped all infrastructure projects after the new government came to power and there was a slowdown in infrastructure spending by the Telangana government. Tamil Nadu and Karnataka were flat and that affected the company's performance. Our cost control initiatives saved us, he said. The company's plants pumped cement at only 69% of its nominal capacity compared to 76% a year ago.
The Net Realization of the Plant (cement price after all expenses) fell to Rs 3,342 per ton from Rs 3,501 year-over-year.
During the quarter, the company witnessed a 10% drop in cement and clinker production to 26.66 tonnes lakh.
Since January, there has been a surge in demand and we expect this to continue, he said.