India Cements on Monday said its net profit dropped by 29.5 per cent to Rs 49.08 crore in July-September quarter due to rise in power tariffs and freight rates.
The Chennai-based company had reported net profit of Rs 69.71 crore during the same period of last year.
“We got slotted by power. Freight rates grew by 35 per cent (affecting the company),” India Cements Vice-Chairman and Managing Director N Srinivasan told reporters here.
Total income for the quarter rose to Rs 1,125.85 crore, from Rs 1,091.92 crore in the same period of last year.
“Despite challenging operating environment for the cement companies in South, coupled with higher power tariff in Andhra Pradesh and Tamil Nadu and hefty power holiday of 12 days per month in Andhra Pradesh we were able to deliver a reasonable topline and bottomline numbers,” Mr. Srinivasan said.
To a query, he said the demand for cement was “better” in Tamil Nadu, Kerala and Karnataka , while it was “poor” in Andhra Pradesh.