Chennai, Jan 27 (PTI) India Cements Ltd has registered net profit at Rs 35.34 crore for the third quarter ending December 31, 2016 in the back of strong sales volume and lesser cost of production.Also Read - Fourth qtr to be "substantially" better: India Cements Ltd
The city-based company registered net profit at Rs 3.16 crore during the corresponding quarter of the previous year. Also Read - Dhoni attends company board meeting, enthrals executives
For the nine month period ending December 31, 2016, net profit surged to Rs 141.73 crore from Rs 79.46 crore registered during the year ago period. Also Read - India Cements to set up unit in MP at an outlay of Rs 1000 Cr
Declaring the results, India Cements Ltd Vice Chairman and Managing Director, N Srinivasan, said, “We have reported gratifying results during the quarter inspite of uncertainty created on account of demonetisation of high value currency notes from early November 2016.”
Total income from operations for the October-December 2016 quarter went upto Rs 1,270.95 crore from Rs 1,066.13 crore registered during the year ago period.
For the nine month period ending December 31, 2016, total income from operations rose to Rs 3,791.11 crore from Rs 3,520.93 crore in corresponding quarter of previous year.
Stating that the “good performance” of the company during the quarter has belied the impression that demonetisation has affected cement consumption, he said, the company officials visited over 100 sales counters in Southern States to witness the impact of demonetisation.
“We met retail and wholesale dealers and interacted with them on the impact of demonetisation. We have not witnessed any impact of demonetisation in cement demand,” he said.
He said the company educated sales persons on making payments through cheque, card and digitial modes, and added that it has paid dividends with increase in sales.
During the quarter ending December 31, 2016, the overall sales volume, including clinker and cement exports, went up by 22 per cent to 23.59 lakh tonne against 19.37 lakh tonne in the previous year, he said.
Noting that the company has embarked on refinancing the debt due to uncertain market conditions, Srinivasan said, “last year, the company repaid Rs 250 crore. This has reduced the term debt to Rs 1900 crore. This year, it planned to reduce another Rs 250 crore of which it has repaid Rs 180 crore so far.”
The company is working towards having a term debt below Rs 1000 crore which it feels will be comfortable, he said.
Declining to reveal sales contributed from exports market, he said the company was also looking at entering newer overseas market.
This is published unedited from the PTI feed.