India Cements reports profit after tax of Rs.62.07 crore

India Cements Ltd. (ICL) has reported a lower than expected profit of Rs. 62.07 crore during the first quarter of the financial year till June 2012.

The cement maker had recorded a profit after tax of Rs. 102.03 crore during the same quarter of the previous financial year. The total income from operations of the company rose to Rs. 1,205.07 crore during the quarter from Rs. 1,061.72 crore earlier.

N. Srinivasan, Vice-Chairman and Managing Director said that the profit fell due to various factors including rise in freight charges, revision in power tariffs and increase in wage cost. He also said that the company also had to pay higher landed cost of imported coal due to the fall in the value of the Indian rupee against the US dollar.

He expressed satisfaction at the 14 per cent increase in the company's before interest, tax, depreciation and amortization (EBITDA) to Rs. 281 crore during the quarter. Mr. Srinivasan said ICL was able to imprve its EBITDA during the quarter because it kept its prices unchanged.

Meanwhile, the company is now looking to export markets including Sri Lanka and South Africa for selling its products. "We are looking at exports from India, to countries like Sri Lanka and South Africa. Of course, there are challenges to face in it, but exports is feasible now," said Mr. Srinivasan.