[ad_1]
Despite better demand, the cement industry in the South is unable to pass on the rise in cost of production, said The India Cements’ vice-chairman and MD N. Srinivasan.
“Compared with all-India peers who had a reasonable increase in selling price to partially offset the cost increase, the industry in the South had to bear the brunt of severe cost push without any compensating increase in selling price,” he said at the AGM.
While variable cost went up significantly over that of previous year, the net plant realisation improved only marginally by 4% and such increase in variable cost alone was close to ₹.200 crore. That was the primary reason for the decline in EBIDTA to about ₹39 crore for the quarter ended June 30, compared with ₹165 crore in the same period last year, he said.
Mr. Srinivasan said that they were unable to predict the coal prices as currently it could be imported only from Australia and Indonesia.
[ad_2]
Source link
