India Cements profit dips due to rising input costs
India Cements has reported a net profit of Rs 26.28 crore (Rs 64.92 crore) on net sales of Rs 1,190.64 crore (Rs 1,116 crore) for the fourth quarter ended March 31, 2013. Rising costs of fuel and power and a lukewarm market have contributed to India Cements' net profit dropping by 60 per cent in the fourth quarter of 2012-13 as compared with the corresponding period in the previous year.
N Srinivasan, Vice-Chairman and Managing Director of the company said that the story of the year is increased cost. High costs of diesel, coal and electricity have hit realisation. Rail freight and diesel price hike have contributed to freight costs going up to Rs 966 a tonne of cement from Rs 800 earlier; cement prices in Hyderabad have dropped to Rs 190 a 50-kg bag from Rs 265. The demand too has been lukewarm, he said.
Srinivasan, however, was more aspirant on the outlook for the current year as the company's investments in securing coal and electricity through captive thermal plants are falling into place. India Cements will reap the benefits of these investments in the current year.