November 7, 2013 4:20:25 pm
India Cements Ltd has plunged into a net loss of Rs 22.53 crore for the second quarter ended September 30,2013 due to issues like high finance costs,decline in sales and rising expenses.
The Chennai-based company,which also owns IPL cricket team Chennai Super Kings,had reported a net profit of Rs 49.08 crore in the corresponding quarter of the previous fiscal.
The net sales of the company owned by BCCI chief N Srinivasan,declined by 3.27 per cent to Rs 1,085.93 crore in the last quarter vis-a-vis Rs 1,122.67 crore of Q2FY’13,the company said in a filing to BSE today.
Besides,its finance costs increased by over 48 per cent to Rs 98.75 crore in the last quarter.
Total expenses,at Rs 1,026.57 crore,amounted to over 94 per cent of its net sales. In the Q2FY13,expenses (Rs 987.50 crore) were nearly 87 per cent of sales (Rs 1,122.67 crore).
“Finance costs includes Rs 23.62 crore for the quarter ended September 30,2013 being the foreign exchange translation difference other than those capitalised/routed through foreign currency monetary item translation difference account,” India Cements said in the filing.
The Competition Commission of India had passed an order on June 20,2012 alleging contravention of the provisions of The Competition Act 2002,by certain cement manufacturers including India Cements and imposed a penalty of Rs 187.48 crore.
“… the company has filed an appeal before the Competition Appellate Tribunal against the order and hence no provision is presently considered necessary in the accounts. The company has deposited Rs 18.74 crore on the interim order passed by the Tribunal as a condition precedent for grant of stay,” it said.
Following the results,shares of the company were trading 5.10 per cent down during the late afternoon trade at Rs 53 a piece on BSE.
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