India: India Cements has reported a 39% drop in net profit for the quarter ending 30 June 2012. Profit fell to US$11.2m from US$18.4m in the same quarter in 2011. However, the company earnings before interest, taxes and amortisation (EBITDA) rose by 14%, to US$50.9m from US$40.1m.
The Chennai-based cement manufacturer's total income, which also includes revenue from Indian Premier League (IPL) franchise Chennai Super Kings, rose by 13.5% to US$218m from US$192m. Total expenses increased by 13% to US$167m from US$147m, mainly due to higher fuel consumption and transportation costs.
"Our primary focus this quarter has been on maintaining the margins despite increases in rail fares, power tariff revision in our states of operation, increases in wages and a substantial depreciation of Rupee against the US Dollar pushing up prices of imported coal," commented N Srinivasan, vice chairman of India Cements. He also added that in the reported quarter the company has continued to work on infrastructure connecting its coalmines to ports in Indonesia.
Cement production stayed stable for the quarter at 2.35Mt in 2012 against 2.32Mt in 2011. Cement and clinker sales also reported little change, with 23.8Mt in 2012 reported against 23.1Mt in 2011.
