Cement manufacturer The India Cements Ltd has reported standalone net loss for the quarter ending March 31, 2021 at Rs 23.71 crore due to 'spiraling' increase in the cost of input materials together with the loss of volume, the company said on Friday.
The Chennai-based company had registered standalone net profit at Rs 71.63 crore during corresponding quarter previous year.
For the year ending March 31, 2022 standalone profit stood at Rs 38.98 crore as against Rs 222.04 crore registered year ago.
Total income for the quarter under review was at Rs 1,396.72 crore, as against Rs 1,461.44 crore registered in corresponding quarter last fiscal.
For the year ending March 31, 2022 standalone total income grew to Rs 4,729.83 crore from Rs 4,460.12 crore registered last year.
The Board of Directors which met here on Friday recommended a dividend of Re 1 per equity share of Rs 10 each for the year 2021-22.
In a statement, the company said the 'spiraling' increase in the cost of input materials together with the loss of volume resulted in a "sub-par performance" of the company for the quarter as well as for the year ending March 31, 2022.
"With a slow recovery in the southern markets further affected by record rains and floods, the selling price of cement was under constant pressure resulting in uncompensated increase in the cost of production. It was further compounded by the reduction in volume as the company as a prudent policy withdrew from the far off markets to focus on home markets," the company said.
The recovery of the cement industry in the South was also 'sluggish' and the economy was yet to pick up to its normal levels. With the huge supply overhang, the selling price of cement was volatile leading to loss of Rs 36 crore for the quarter as compared to a profit before tax of Rs 98 crore during the same quarter previous year, it said.
The performance of the company during the quarter was 'sub-optimal' with a cement volume of 26.29 lakh tonnes (as against 26.66 lakh tonnes) and the clinker volume of only 0.38 lakh tonne as compared to 3.24 lakh tonne in the previous year, it said.
The overall volume was at 26.57 lakh tonnes, a drop of 11 per cent as compared to 29.90 lakh tonnes in previous year, it said. For the year ending March 31, 2022, the overall volume grew by 2 per cent to 90.70 lakh tonnes as compared to 89.02 lakh tonnes in previous year, it said.
On the outlook, the company said the recovery was challenged by heightened global risks due to the Ukraine-Russia conflict, worsening supply disruptions, spike in international energy and commodity prices, volatile crude oil prices and an elevated inflation.
The cost pressure is expected to mount on industry with higher fuel and commodity prices besides the increased power tariffs and logistics cost, it said.