Indian Cements Posts Dismal FY’14 Numbers

Topline of India Cements recorded a decrease of 6.2% on yearly basis and stood at Rs 1125 crore during Q4FY14 against Rs 1199 crore in same period of last year. However, income from other operation of the company which include ship charter freight earning showed exponential growth of 432% and went up to Rs 44.6 crore in said period against Rs 8.4 crore in Q4FY13.

Operating EBITDA of the company fell by 32.5% on yearly basis and stood at Rs 119 crore in Q4FY14 as against Rs 176 crore in same period of last year on account of increase in major expenditure of the company. Power Fuel cost of the company went up to 31% of total operating revenue in Q4FY14 against 28% during Q4FY13. Further transportation and handling cost also showed similar trend and went up to 24.3% of total operating revenue in Q4FY14 where it was 23% in Q4FY13. Moreover, cost of material also recorded marginal increase in the said period and reached to 14% of total revenue from 13% in same period of last year. 

Bottomline of the company recorded net loss of Rs 157 crore (including exceptional loss) in Q4FY14 against net profit of Rs 26.3 crore in same period of last year on account of increase in finance cost and exceptional losses during the quarter. Finance cost for the company went up by 22% to Rs 78 crore during Q4FY14 against Rs 64 crore in Q4FY13. Moreover, the company incurred exceptional loss of Rs 69.43 and Rs 57.13 crore during the said quarter on fuel surcharge adjustment and corporate debt restructuring scheme respectively.

If we exclude the exceptional item, net loss of the company stood at Rs 30.5 crore in Q4FY14 against net profit of Rs 26.3 crore in same period of last year. 

Coming to yearly performance for FY’14, India Cements did not perform well during the said period. Topline of the company stood at Rs 5105 crore in FY’14 with marginal decrease of 1.4% on yearly basis as against Rs 5179 crore in last fiscal year. Further EBITDA dropped by 37% to Rs 611 crore in FY’14 against Rs 975 crore in last fiscal year on account of rises in expenditure of the company. Moreover, the company recorded net loss of Rs 117 crore in FY’14 against net profit of Rs 188 crore in FY’13.