India Cements on Monday reported a 69.70 per cent fall in its consolidated net profit to Rs 19.47 crore for the first quarter ended June 2020. The metrics were hit by COVID-19 led disruptions. The consolidated net revenue of India Cements Ltd stood at Rs 763.46 crore. They declined by 48.98% YoY from Rs 1496.37 crore in the same quarter previous year. The cement maker’s total expenses were at Rs 743.04 crore, down 46.96 per cent from Rs 1,401.09 crore a year ago.
Ambuja Cement, on the other hand, posted a net profit of Rs. 453.37 crore for the quarter ending June. It was 10.03% higher than what was recorded in the same quarter previous year. ACC posted a 40.61 per cent year-on-year (YoY) drop in standalone net profit at Rs 267.99 crore for the quarter ended June 30. ACC had reported a net profit of Rs 451.30 crore in the corresponding quarter last year.
The company in its quarterly report to the stock exchange that its regular business operations have been disrupted severely due to Covid-19 outbreak and subsequent lockdown. Which led to restrictions in transportation, supply chain disruptions, travel bans, social distancing and other emergency measures. In consequence of the lockdown. The operations of the company were shut down during the last week of March and restarted in phases during April.
“The pandemic situation has affected the normal business operations of the company and production, sales have been impacted,” the company said.
In conclusion, it was expected that the revenue and profits will be down this quarter. The company is hopeful that as life goes back to normal, they can recover the losses it sustained during the pandemic.