India Cements: 1Q16 EBITDA edges up to INR2.05bn

India Cements saw its net sales slip to INR12.02bn in April-June 2016 from INR12.12bn in the corresponding period of the previous year. The company's EBITDA for the quarter rose to INR2.05bn from INR2bn in 1Q15.

While volumes were higher YoY, in terms of MoM trend, tonnages were lower. Elections in Tamil Nadu and an easing of price during April and May impacted the sales. However, pricing has picked up in June and July, according N Srinivasan, India Cements' vice-chairman and MD.

During the quarter, cement prices were stable in Tamil Nadu and Kerala. Karnataka and Andhra Pradesh
witnessed a drop in prices. But the fall was steeper in Andhra Pradesh where prices fluctuated. “We have learnt to manage such price trends so that our bottomlines are not affected,” Mr Srinivasan said.

While the company is awaiting a pick-up in demand on the back of a good monsoon season and an infrastructure push in the south, it is focussing attention on improving its exports. India Cements has been exporting 30,000t of cement and 40,000t of clinker a month to Sri Lanka.