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India Cements Ltd. (ICL) announced a decline in its self-sustaining net income of 93.96% for the second quarter ended September 2018, to stand at 1.43 crore due to the sharp rise in fuel prices and the depreciation of the rupee. This compares with a net profit of 23.67 million crores recorded a year ago.
"The difficult conditions in the southern cement market, coupled with a sharp increase in fuel and electricity prices and the depreciation of the rupee, affected the quarter's operating results, "NOT. Srinivasan, vice president and general manager, told the media.
According to him, the loss related to the fluctuation of exchange rates was 12 crore. Interest and other charges amounted to cr 84 crore (89 crore). The resulting profit before tax was 1.4 rupees crore against 36 rupees.
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<p> During this period, ICL sold 30.77 lakh tons of cement, up 13.92%. Total income increased 9.09% to 1,390.84 crore (1,274.90 crore). "In spite of all this, ICL has managed to cope well with this difficult quarter by increasing volumes and tightly controlling fixed costs as well as selling and distribution costs," he added. </p>
<p> In the future, ICL estimated that the demand for cement would increase due to the increasing consumption of infrastructure, irrigation, private housing and affordable. </p>
<p> "The worst is over and we expect the market to recover. We had a capacity utilization of 77% compared to 70% in the same quarter last year. We plan to operate at full capacity in the fourth quarter, "he said. </p>
<h2> "Last Difficult Quarter" </h2>
<p> Stating that the next three or four years will see an exceptional position in the cement industry, he said, "It takes time for prices to rise. </p>
<p> "The period from October to December will be the last difficult quarter, the following quarter enjoying some relief. Prices would be better from the quarter of April to June, "he said. </p>
<p> ICL entered into a share purchase agreement for the acquisition of the all of the shares of Springway Mining Pvt. Ltd, in a progressive manner for a total cost of 182.89 crore. </p>
<p> The acquisition is underway with the aim of creating a cement plant of 2.5 million tons per year in Madhya Pradesh, at a cost of KR 900 to KR 1. After the expansion, ICL's total cement production capacity would increase to 17.5 million tons. </p>
<p> "The plant, which will respond PM's requests in central and eastern Uttar Pradesh will be operational by January 2021, "said Dhoni, Captain of the Chennai Super Kings and Vice President ( marketing), was also present </p>
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