India cements Q4 profits down
The India Cements Ltd (ICL) on Monday said its profits for the quarter ended March 2017 were Rs 34.28 crore, down from Rs 50.49 crore. The board of directors of the company has maintained the dividend payout of 10% (Re 1 per share) for the fiscal 2016-17.
Total operating income was at Rs 1,524.29 crore during the fourth quarter as against Rs 1,312.66 crore in 2015-16. The company said it has concluded the merger of subsidiaries and brought all cement assets under ICL. Total operating income of Rs 5794.03 crore was earned in the full year of 2016-17 against Rs 4,833.59 crore in 2015-16. Net profits rose 33.39% at Rs173.35 crore in 2016-17
“Cash crunch during the fourth quarter impacted profitability. We also lost 15 to 18 days of sales in Tamil Nadu due to Jallikattu agitation and other political developments,” said N Srinivasan, VC & MD of the company. The cement demand grew 7% in the south as against a flat all India demand.
During 2016-17, the overall sales including clinker and cement exports of 4.8 lakh tonnes was 110.39 lakh tonnes, registering a growth of 10% over the previous year. Last year, India Cements improved its capacity utilisation in its plants to 70 % from 63% in the previous year.
Net plant realization (NPR) for the year was Rs 3,430 per tonne, down from Rs 3,500 in the previous year. The company has restructured its debt. “We have refinanced our long term debt of Rs 1100 crore which stretched over a 12 year period with bulk of the payments back ended,” he said. This will ensure more liquidity for the company as it hopes a ratings upgrade.