Monday, February 10, 2014

INDIA: India Cements posts a net profit in Q3, surpasses estimates

India Cements Ltd on Monday posted a small profit for the fiscal third quarter, beating estimates by analysts who had predicted a loss, helped by better price realizations.

The Chennai-based cement maker reported a profit of Rs.42 lakh for the three months ended 31 December, compared to a profit of Rs.43 crore a year ago. The company had been expected to report a loss of Rs.5.84 crore in the period, according to a survey of analysts by Bloomberg.

The company, which owns the Indian Premier League cricket franchise Chennai Super Kings, posted a drop in revenue to Rs.1,036 crore fromRs.1,082 crore a year ago. Revenue was a tad lower than the estimate ofRs.1,043.6 crore in the Bloomberg survey.

Demand for cement continues to be sluggish, but prices have improved, said N. Srinivasan, executive chairman of India Cements. Net price realization was Rs.3,466.6 per tonne, up from Rs.3,090 per tonne in the preceding three months.

India Cements shares fell after the announcement of the results, ending Wednesday 3.03% lower at Rs.52.85, as BSE’s benchmark Sensex fell 0.2% to 20,334.27 points.

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