InvestorQ : Do you suggest buying India Cements after the turn around in the latest Dec-20 quarter?
Ria Jain made post

Do you suggest buying India Cements after the turn around in the latest Dec-20 quarter?

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Dia Deshpande answered.
3 months ago
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India Cements Q3 turned around to Rs.69.36 crore profits after tax or PAT from reporting a loss last year. At the same time, revenues for the Dec-20 quarter on consolidated basis was lower at Rs.1,184.68 crore. The top line of the company was largely impacted by the lag effect of the COVID and most of the incremental demand is coming from East, Central and north India for now.

Consolidated operating profits were up 143% at Rs.161.40 crore in the Dec-20 quarter. The operating profits improved on the strength of lower cost of materials consumed during the quarter as well as a sharp fall in miscellaneous expenses. This was part of the conscious cost cutting program initiated by the government. The OPM as a result expanded from 5.33% in the Dec-19 quarter to 13.62% in Dec-20 quarter due to lower costs and lower base.

The consolidated Profit after tax (PAT) for the Dec-20 quarter turned around to profit of Rs.69 core as against a loss of Rs.9.43 crore in the Dec-19 quarter. However, profits were lower on a sequential basis. PAT margins managed to turn around from negative in Dec-19 quarter to a positive figure of 5.85% in the Dec-20 quarter.

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