 "Cement")
India Cements’ capacity utilisation was severely impacted due to liquidity crunch on account of losses sustained in the earlier quarters. | Photo: Bloomberg
Leading cement manufacturers reported single-digit volume growth in the June quarter, though their topline was muted on account of the continued downtrend in the price.
Listed manufacturers such as UltraTech, Ambuja Cements, ACC, Shree Cements, and Dalmia Bharat – in their latest quarter earnings reported gains in volumes, ranging from 3 to 9 per cent and increase in capacity utilisation.
However, soft cement prices have put their topline under pressure in the April-June period. Besides, raw material costs went up marginally due to an increase in the cost of fly ash and slag.
The all-India average cement price was at around Rs 348 per 50 kg bag in June 2024, down around 3 per cent year-on-year. However, this was higher when compared to Rs 335 per bag in May 2024.
For the first two months of FY25, the average cement price was at Rs 340 per bag, down 8 per cent YoY. In FY24, the average price was Rs 365 per bag and Rs 375 per bag in FY23, according to the report.
Moreover, intense heatwave and general elections also slowed the pace of construction activities in April-May.
UltraTech Cement reported a flat consolidated net profit of Rs 1,696.59 crore for the June quarter. The leading cement maker’s revenue from operations was up 1.87 per cent at Rs 18,069.56 crore for the period.
Volume sales were up 7 per cent to 31.95 million tonne (MT), said the Aditya Birla Group firm which has announced an open offer for the South-based rival India Cements Ltd after acquiring the promoter’s stake.
Adani Group firm Ambuja Cements Ltd reported a consolidated net profit of Rs 789.63 crore and its revenue from operations was at Rs 8,311.48 crore.
Though its results were not comparable due to past acquisitions of Sanghi Industries and ACCPL, its consolidated revenue from operations was at Rs 8,712.90 crore in the corresponding June period of FY24.
Ambuja Cement’s consolidated sales volume, including its subsidiary ACC, was at 15.8 MT, up 2.6 per cent.
This was “highest ever clinker & cement sales in Q1 over last 5 years,” said the Adani group firm in its latest earning statement.
On a standalone basis, Ambuja Cements’ own sales volume was at 9.3 MT in the June quarter, up 2.2 per cent.
ACC reported a decline of 22.46 per cent in its net profit to Rs 361.40 crore and its revenue from operations was marginally down to Rs 5,154.89 crore in the June quarter.
ACC’s sales volume from Cement & Clinker in April-June was up 9 per cent at 10.2 MT, which was the “highest ever volume” of the company over the last five years.
Bangur family-promoted Shree Cement’s consolidated net profit was down 51.31 per cent to Rs 278.45 crore in the June quarter. However, its revenue from operations was up 1.73 per cent to Rs 5,123.96 crore.
In June quarter, Shree Cement’s “total sale volume increased by 8 per cent from 8.92 MT to 9.64 MT,” the company informed in its earning statement. Besides, sale of premium products stood at 7.6 per cent of total trade sale volume, it said.
Dalmia Bharat’s income from operations was marginally down to Rs 3,621 crore.
However, its sales volume increased 6.2 per cent YoY to 7.4 MT.
Some cement companies such as JK Lakshmi Cement, Birla Corporation and India Cement reported a decline in volume.
M P Birla Group firm Birla Corporation Cement sales by volume during this June quarter were at 4.38 MT compared with 4.41 MT in the corresponding period last fiscal. It faced “unusually weak cement prices and sluggishness in demand,” in the quarter.
JK Lakshmi Cement Ltd (JKLC), a flagship company of JK Organization sales volume declined by 2.32 MT from 2.53 MT.
India Cements’ capacity utilisation was severely impacted due to liquidity crunch on account of losses sustained in the earlier quarters.
Over the outlook, the cement makers expect improvement, helped by rising demand from the housing and infrastructure sectors. With a normal monsoon and huge investments announced in the budget on infrastructure and housing projects, they expect demand to improve further.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Aug 11 2024 | 5:01 PM IST
