India Cements Ltd reported a 56 per cent fall in net profits for the year ending 31 March 2018. Consolidated net profit decreased to INR707.2m, down from INR1.631bn in the previous financial year.

Revenues dropped by seven per cent from INR58.802bn in FY16-17 to INR54.567bn one year later.

India Cements Vice-Chairman and Managing Director, N Srinivasan, attributed the slide in profits to a reduction of INR200/t in cement prices and higher fuel, energy and other production costs.

However, he remains positive for the rest of the year. “While Tamil Nadu is yet to pick up, we saw recovery in demand in Andhra Pradesh, Telangana, Karnataka and Maharahstra due to infrastructure projects,” he said. “Capacity utilisation has improved to 79 per cent from 73 per cent last year. I expect to see an increase in demand for the following quarters which will impact price positively,” he added.

The company has planned a capital expenditure of INR3bn for the next two years, including a cement mill at Sankar Nagar, Tamil Nadu, and investments in emissions control equipment.