NEW DELHI: India Cements expects to double exports revenue during the current financial year on the back of strong demand in overseas markets, a top official of the company said today. The company, engaged in manufacturing and marketing of cements and clinkers, has sold 1.52 lakh tonnes of cement and clinker during the quarter ending September this year against 1.02 lakh tonnes in the same quarter of last fiscal. “Last year our export revenue was Rs 100 crore. This year during the last six months (ending September 30, 2016) the revenue was Rs 70 crore. We will close export revenues to about Rs 170-200 crore,” Company Vice-Chairman and Managing Director N Srinivasan told reporters here.
Noting that the company’s cement was well accepted in Sri Lanka and was already one of the top three players, he said, “The company will export its products to overseas markets wherever it is viable.” The Chennai-based company produces clinkers at its facility in Kakinada and cement at its Krishnapatnam manufacturing unit. Reacting to the scrapping of Rs 500 and Rs 1,000 notes by the Centre, he said, “Post announcement (by the Centre) the sale remains unaffected.” The demand for cement continues to be the same. Whether the inadequate supply of fresh currency notes will have a material effect is what remains to be seen, he said.
“There are two uncertainties. One, regarding the monsoon and the second is that there should be liquidity (into the system), he added. India Cements reported 62 per cent jump in standalone net profits at Rs 62.41 crore for the quarter ending September. The city-based company had recorded a net profit of Rs 38.50 crore during the same quarter of previous year.
The standalone total income rose by 7 per cent to Rs 1,314.44 crore in July-September quarter this fiscal from Rs 1,229.10 crore during the same quarter in 2015-16. Referring to the company’s quarterly performance, Srinivasan said, the capacity utilisation of the company’s plants was around 68 per cent as against 60 per cent in same quarter of previous year. Overall volume including exports during the quarter ending September 30, 2016 was around 23.99 lakh tonnes as against 21.65 lakh tonnes in the same period previous year.
