The India Cements Ltd. (ICL) has reported a net profit of ₹35.34 crore for the quarter ended December 31, 2016, up from ₹3.16 crore in the corresponding quarter the previous year. The operating income for the quarter under review stood at ₹1,270.95 crore (₹1,066.13 crore).
Addressing the media here on Friday, N. Srinivasan, vice-chairman and managing director of the company, said demand pick-up in the South and higher price-realisation vis-a-vis the sequentially previous quarter had combined to boost the net profit during the quarter. The “gratifying results”, he said, should be read in the context of demonetisation of high-value currency notes.
Also, the third quarter was usually perceived as a weak one in view of the monsoon, he added. Mr. Srinivasan said despite demonetisation, stockists and dealers had found a way to keep going. He was confident that the next financial year would be an improvement on the current one, he said, adding signs of forward movement in the Andhra Pradesh market could be found with the cement firms getting initial supply orders for low-cost house construction. Fielding a range of questions, Mr. Srinivasan said India Cements was embarking on refinancing debt. “A significant portion of the debt was refinanced, resulting in reducing the near-term commitments, which has also improved the rating of the company,” he added.
Asserting that “growth is a mantra that you can’t forget,” he said it was important to know how to grow with least debt. Last year, it had repaid debt to the tune of 250 crore, and was hoping that a similar amount would be repaid by the end of this financial year. The company has a long-term debt of around 1,900 crore. The debt reduction in its wake had made ICL eligible for floating commercial paper. All these augured will for hte company, he added. To a specific question, he said ICL would be comfortable with a sub-1,000 crore debt level.
ICL, he said, would continue to give thrust to exports and explore new markets going forward.
