The India Cements Ltd.’s standalone net profit for the third quarter ended December fell 95% from a year earlier to ₹3 crore, due to lower sales volume, rise in fuel costs, heavy rains and the impact of the pandemic.
Revenue from operations dipped to ₹1,108 crore, from ₹1,160 crore. Total expenditure grew ₹35 crore to ₹1,109 crore. Volumes slid 11% to 21.08 lakh tonnes. “These are very difficult times due to Omicron and southern States getting flooded during the monsoon resulted in stalling of construction activities,” said N. Srinivasan, vice-chairman and MD.
“On top of this, for the first time we had a coal crisis in the world. American coal was not available, Australian coal was highly priced and Indonesian coal was erratic in availability. South African and Australian coal quality is lesser than that of American coal,” he said.
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“If you were smart and had purchased coal earlier at low prices, you could sustain. Otherwise, you have to raise prices,” he added.