The loss before exceptional items and tax stood at Rs 40.3 crore in Q3 FY24 as against loss before exceptional items to Rs 165.37 crore posted in Q3 FY23. The company reported an exceptional item of Rs 26.21 crore on account of profit on sale of ship while during the previous year.

The company reported positive EBIDTA of Rs 66 crore in Q3 FY24 as against a negative EBIDTA of Rs 66 crore recorded in the corresponding quarter last year. “With the improved selling prices and lower variable cost, the company could improve upon the EBIDTA for the quarter despite lower volume, “ the company added in press release.

The capacity utilization of the company, however, was muted on account of stressed working capital conditions and it was around 51% only during the 3rd quarter as compared to 56% in the same quarter of the previous year and 61% in the second quarter of the current fiscal.

The cement and clinker volume for the quarter was only 19.85 lakh tons as compared to 21.82 lakh tons in the previous year a drop of nearly 9%. The variable cost was kept under check despite the lower capacity utilization with reduction in power consumption and improved usage of alternative fuels and petcoke in the overall fuel mix.

The company said that the fixed cost was impacted due to increase in fixed power demand charges due to revision by state electricity boards and increase in advertisement expenditure.

On its outlook the company said, “Cement demand is expected to remain intact with a positive outlook with increasing preference for homeownership and rebuilding of homes and work places. The construction activity is also expected to get a fillip from increased spending on infrastructure projects by the Centre and States ahead of next Lok Sabha Elections.

Cement industry in the south still has unabsorbed capacity to meet the demand. Therefore, margins are expected to come under pressure with increasing operational costs arising from intense competition in the market place, logistics and supply chain constraints and the depreciation of rupee against dollar.”

India Cements business of the company is of manufacturing and sale of cement and cement related products.