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Business EconomyPosted at: May 24 2023 3:52PM


Record rise in fuel cost impacted India Cement's performance : Srinivasan

Chennai, May 24 (UNI) India Cements Vice-Chairman and Managing
Director N.Srinivasan today said the performance of the company
during the year under review was adversely impacted by the record
increase in the cost of fuel and power which couldn't be compensated
in the market due to supply overhang.
This was compounded by one off charges on account of impairment
of certain investments and advances, he told reporters here, while
announcing the company's results.
He said this was to some extent compensated by the profit on sale of
investments. All these factors led to dismal performance for the quarter
and the year ended March 31, 2023.
He said the fortunes of the construction sector and cement industry
during the year under review was subject to wide fluctuations. As
per DIPP, there was significant pick up in the cement demand with
a growth of over17% in the first quarter and started sliding down to
1.8% in the second quarter with a negative growth in October’22.
While there was further pick up in the later months, the growth was
again negative in the month of March’23 finishing the year only around
8.6% implying a steep drop in growth in the second half of the year.
This inconsistent growth in demand for cement had a telling impact
particularly in south where the industry is saddled with huge capacity.
The growth story in south has also been same which witnessed a 15%
growth in the first half of the year while it turned out to be less than
10% in the third quarter, Mr Srinivasan said.
The industry witnessed a record increase in the cost of production in
the first half of the year. The exchange rate of dollar has also gone up
by 10% during the year in addition to the above. But there was some
relief with softening of prices of imported coal and petcoke during
the second half.
The increase in cost of production could not be recovered from the
market.
However, All India players had reasonable increase in the selling
price elsewhere in the other regions to partially offset the cost
increase, Mr Srinivasan said.
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