India Cements: Losses escalate - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

India Cements: Losses escalate

Jul 30, 2002

India Cements, the largest producer of cement in the southern region has reported disappointing results for 1QFY03. The company has reported a net loss for the first quarter of the current year compared to a profit in the comparable period last year. Total revenues of the company have also dropped by 21% on a YoY basis

(Rs m)1QFY021QFY03Change
Net Sales 3,134 2,479 -20.9%
Other Income 8 7 -4.0%
Expenditure 2,251 2,247 -0.2%
Operating Profit (EBDIT) 882 232 -73.8%
Operating Profit Margin (%)28.2%9.3%
Interest 572 576 0.6%
Depreciation 202 203 0.5%
Profit before Tax116-539-
Tax - - -
Profit after Tax/(Loss) 116 (539)-
Net profit margin (%)3.7%-21.8%
No. of Shares 140.0 140.0
Diluted Earnings per share*3.3-15.4
P/E Ratio (1.5)
(* annualised)

The operating expenses of the company have gone down marginally, but the fall in topline has caused a 74% fall in its operating profits. India Cements' operating margins have fallen by nearly 2,000 basis points to nearly 9%. Interest and depreciation expenses have also gone up marginally.

India Cements has been severly hit by the drop in cement realisations in the southern region. Overcapacity coupled with severe competition from the likes of ACC and Gujarat Ambuja have severely affected the topline and bottomline of the company. For the full year FY02, the company had reported a loss of Rs 8 m. If the proceeds from the sale of its stake in Shri Vishnu Cement is disregarded the net lossess are to the tune of Rs 1.26 bn.

The stock is currently trading at Rs 23. In the short term topline of the company is likely to face increasing pressure due to competition from ACC and Gujarat Ambuja, who have set up new capacities to cater to the southern markets. The poor performance of the company is inspite of a 19% growth in the cement dispatches (of industry) to the southern region. This shows the kind of pressure on the company's volumes. On the realisations front the company will face pressure in the short to medium term due to overcapacity situation in the southern region. In the long term the company's performance will depend heavily on whether it is able to develop new markets in other regions of the country, until then its performance on the bourses is also likely to be subdued.

Equitymaster requests your view! Post a comment on "India Cements: Losses escalate". Click here!

  

More Views on News

INDIA CEMENTS 2020-21 Annual Report Analysis (Annual Result Update)

Oct 20, 2021 | Updated on Oct 20, 2021

Here's an analysis of the annual report of INDIA CEMENTS for 2020-21. It includes a full income statement, balance sheet and cash flow analysis of INDIA CEMENTS. Also includes updates on the valuation of INDIA CEMENTS.

INDIA CEMENTS Announces Quarterly Results (1QFY22); Net Profit Up 136.2% (Quarterly Result Update)

Aug 16, 2021 | Updated on Aug 16, 2021

For the quarter ended June 2021, INDIA CEMENTS has posted a net profit of Rs 466 m (up 136.2% YoY). Sales on the other hand came in at Rs 10 bn (up 36.9% YoY). Read on for a complete analysis of INDIA CEMENTS's quarterly results.

Nuvoco Vistas Makes a Lackluster Debut. Stock Lists at 17% Discount (Views On News)

Aug 23, 2021

Nuvoco Vistas witnessed a tepid listing on the bourses despite strong outlook for the cement sector.

Shree Cement Shares Tanks on Poor Operating Performance in the June Quarter (Views On News)

Aug 10, 2021

Shree Cement lags peers in volume growth.

Key Points to Know Before Applying to Nuvoco Vistas' Public Issue (Views On News)

Aug 7, 2021

Nuvoco Vistas is one of the leading ready-mix concrete manufacturers in India. The issue will open for subscription on 9th August.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

MobiKwik IPO Opens for Subscription Soon. Key Things to Know Before Subscribing. (Views On News)

Nov 20, 2021

The Rs 19 bn issue is set to hit the market soon.

5 Indian Companies Embracing Blockchain Technology (Views On News)

Nov 23, 2021

Blockchain adoption in India was slow in the past. Now, the technology is being well received.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

INDIA CEMENTS SHARE PRICE


Dec 3, 2021 (Close)

TRACK INDIA CEMENTS

  • Track your investment in INDIA CEMENTS with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

INDIA CEMENTS 8-QTR ANALYSIS

COMPARE INDIA CEMENTS WITH

MARKET STATS