The India Cements Ltd. (ICL) reported an over eight-fold rise in standalone web revenue to ₹71.43 crore for the second quarter ended September on price management measures.
However, volumes dropped following the COVID-19 lockdown.
“We were able to overcome the effects of pandemic in terms of financial results,” mentioned N. Srinivasan, vice-chairman and MD, ICL.
“We exercised good cost control measures in terms of variable costs and containing the fixed costs on contract labour, administrative and marketing overheads. Going forward, it will continue,” he added.
According to him, the improved costs of cement together with cash-and-carry coverage helpedimprove profitability and liquidity.
ICL was capable of cut back its variable price of manufacturing by 6% (₹130 per tonne) and the outgo on fastened overheads considerably. Interest and different fees had been decrease at ₹71 crore whereas depreciation was stood at ₹60 crore.
“COVID-19 is not yet over. None of the State governments have declared it,” he mentioned. “After the end of the current fiscal, we have to see the post-COVID-19 developments,” he added.
According to Mr. Srinivasan through the quarter, complete earnings was down by 14% to ₹1,075 crore. Overall quantity of clinker and cement dropped by 21% to 21.07 lakh tonnes, which translated right into a lack of greater than ₹68 crore in contribution. Capacity utilisation improved to 53% from 35% in Q1. In the primary six months, it was 43%.
Mentioning that the cement trade had contracted by 25% when it comes to manufacturing through the first half of FY21, he mentioned that the southern States registered a detrimental development of 29%. The sluggish efficiency of the cement trade within the final quarter of final 12 months was additional impacted by COVID-19 from March.
Asserting that the impression on the cement trade had not been constant all through India, he identified whereas north, central and jap areas noticed a considerable development in demand together with value will increase, western area was impacted by the pandemic with Gujarat and Maharashtra bearing the brunt.
“Now, after a good monsoon and with people having learnt to cope with COVID-19 and with decreased pandemic activity, we see a revival in the west also, which can lead to improved demand in the two quarters to come,” he mentioned.
The restoration is more likely to be gradual within the south on account of substantial capability overhang. Forecast of rainfall through the present north east monsoon has kindled hopes for sustaining the great rural demand, he mentioned.
There are additionally stories of decide up in home constructing and development exercise in semi-urban and concrete centres aided by the rebound, work-from-home idea and return of migrant labour. This, together with an anticipated contemporary stimulus measures from the federal government with concentrate on elevated public spending on irrigation, street constructing and different initiatives, is anticipated to enhance the cement demand, he mentioned.
Meanwhile, the board on Friday appointed T.S. Raghupathy as a further, non-executive director and reappointed S. Balasubramanian Adityan as a non-executive, unbiased director for a second and closing time period of 5 consecutive years until December 6, 2025.