India Cements standalone Q2 net loss widens to ₹240 cr.
India Cements reported standalone net loss for the September quarter over the year ago period has widened to ₹240 crore from ₹81 crore, due to free fall in cement prices.
Revenue from operations contracted to ₹1,017 crore from ₹1,222 crore. Cost of raw materials also declined ₹196 crore to ₹218 crore. The result included exceptional gain of ₹6 crore said the cement major in a statement.
Though the operating performance improved during the Q2 with the increase in a volume by 17% against Q1, the sharp decline in selling prices resulted in drop in net plant realisation by 13% that impacted the margin resulting in a negative EBIDTA of ₹154 crore for Q2.
During Q2, the capacity utilisation improved to 59% from 50% in Q1 despite tight market condition and a free fall in cement prices. The volume for Q2 was 23 lakh tonnes against 23.70 lakh tonnes YOY.
The company could not take advantage of low cost fuel particularly pet coke due to shrinkage of margin on account of low volume levels. Consequently, the variable cost was up by nearly ₹100 per tonne. against Q1 and together with the drop in NPR it impacted the margin by ₹134 crore, the company said.
Published - November 08, 2024 09:48 pm IST
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