India Cements , a prominent player in the Indian cement industry, has reported a significant increase in its domestic sales volume, showcasing robust growth in its core market.

Strong Performance in Domestic Operations

The company achieved domestic sales volume of 2.18 million tonnes, marking an impressive year-over-year growth of 11.60%. This substantial increase underscores India Cements' strong performance in its domestic cement sales operations.

Market Implications

The double-digit growth in sales volume suggests a potentially strong demand for cement in India Cements' key markets. This growth could be indicative of increased construction activity or infrastructure development in the regions where the company operates.

Industry Context

While the specific reasons for the growth were not detailed in the report, the cement industry's performance is often considered a barometer for economic activity, particularly in the construction and infrastructure sectors. India Cements' positive sales figures may reflect broader trends in these areas.

Looking Ahead

As India Cements continues to demonstrate strong sales performance, stakeholders will likely be keen to see if this growth trend can be sustained in the coming quarters. The company's ability to capitalize on market demand and potentially increase its market share will be areas of interest for industry observers and investors alike.

India Cements' reported growth in domestic sales volume provides a positive signal about its operational performance. However, a comprehensive assessment of the company's overall financial health would require additional data on revenue, profitability, and other key financial metrics.

India Cements , a subsidiary of UltraTech Cement Ltd, has announced its financial results for the first quarter, revealing a mixed performance with improved operational efficiency, but still reporting a loss.

Key Financial Highlights

• Net Sales: The company reported consolidated net sales of ₹1,024.74 crore, marginally lower compared to ₹1,026.76 crore in the same quarter last year.
• EBITDA: Earnings before interest, depreciation, and tax (EBITDA) turned positive at ₹92.31 crore, a significant improvement from a loss of ₹9.16 crore in the corresponding quarter of the previous year.
• Loss Before Tax: The company recorded a loss before tax of ₹162.00 million, showing improvement from the previous year's loss of ₹1,600.00 million.
• Exceptional Item: India Cements reported an exceptional item of ₹2,400.00 million during the quarter.

Operational Performance

India Cements reported an 11% year-on-year growth in sales volume. The company's average capacity utilization stood at 61% for the quarter.

Cost Management and Efficiency

The company has successfully refinanced its debt, resulting in a significant reduction in finance costs to ₹26.58 crore from ₹82.36 crore in the corresponding quarter of the previous year. This refinancing strategy has helped in improving the company's financial position.

Future Outlook

India Cements is planning a capital expenditure program over the next two years aimed at:

1. Improving efficiency and reducing operating costs
2. Increasing the share of renewable power
3. Enhancing safety standards

The company expects its profitability to improve further as benefits from this capex program start flowing in, coupled with synergies from economies of scale, wider distribution network, and a stronger balance sheet.

Market Position and Industry Outlook

As a leading cement company in Southern India, India Cements is poised for growth. The company anticipates that increasing government spending on infrastructure and improvement in housing market demand will further boost its performance.

India Cements' Managing Director stated, "We are deriving benefits of synergy with our holding company to continuously improve efficiency. The company's profitability is expected to improve further as the benefit of our capex program starts flowing in, together with synergies from economies of scale, wider distribution network and stronger balance sheet."

About India Cements Limited

India Cements Limited, now a subsidiary of UltraTech Cement Limited, is one of the leading cement companies in Southern India. The company has a total cement capacity of 14.75 MTPA with eight integrated cement plants in Tamil Nadu, Telangana, Andhra Pradesh and Rajasthan, and one grinding unit in Tamil Nadu.