India Cements 1Q net profit drops 39.2%

India Cements Ltd today said that it has reported a decline of 39.2 per cent in its net profit for the first quarter ended June 2012 at INR62.07 crore.

The net profit of the company stood at INR102.03 crore during the same period a year ago, said India Cements in its filing to the Bombay Stock Exchange on August 13, 2012.

Meanwhile, the company has said it is exploring at possibilities of exports to Sri Lanka and South African countries. Speaking to Business Standard of India, N Srinivasan, vice chairman and managing director, India Cements, said:  “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."

The company is expected to start exports to one of the countries, probably with Sri Lanka, within this fiscal year. However, he refused to divulge  more details of the plans. He said that there are issues like higher cost of logistics, internal transport of consignments from the existing factories to the ports, which need to be addressed.

Moreover, before starting exports, the company also has to meet the entry barriers in these countries, especially in the African countries. “The amount of exports will be marginal. We are not considering it as enough to offset the slowdown in demand in India and the overcapacity of the facilities,” Srinivasan said.