Chennai, Aug 12 (IANS): Cement major India Cements closed the first quarter of FY23 with a higher net profit of Rs 76.09 crore.

The company had posted a net profit of Rs 76.09 crore on operational revenue of Rs 1,454 crore, up from a net profit of Rs 37.42 crore on revenue of Rs 1,025.54 crore during the corresponding period of the previous year.

The total comprehensive income for the company for the period under review stood at about Rs 80 crore.

According to officials, the company had opted for an income tax rate of about 25 per cent under Section 115 BAA resulting in a deferred tax of Rs 148.10 crore.

"The capacity utilisation has gone up to 69 per cent from 50 per cent. However the coal costs have shot up through the roof," Vice Chairman and Managing Director N. Srinivasan told the media here on Friday.

According to him, with surplus cement production capacity in the south, the company was not able to pass on the increased cost to the consumers.

Nevertheless, the company plans to hike the retail prices of cement bags soon, Srinivasan said.

He also said that the company is looking at alternate sources of coal and has bought two shipments from Russia.

Srinivasan said the company buys coal on spot basis and not on long term contracts.

He said the Railways have to come up with some telescopic tariff for movement of cement from South - where it is in surplus - to North where the demand is more.

According to him, owing to the hike in coal cost, the operation of the company's power plants turned costlier than sourcing power from the grid.

On the earlier announcement of monetising surplus land to pay off debt, Srinivasan said in two/three months the company can say something concrete on that move.

India Cements has about 26,000 acres of land (different categories) in Andhra Pradesh and Tamil Nadu.

As on June 30, the company's debt position was about Rs 2,944 crore.

According to Srinivasan, the company would complete the cement plant modernisation project this year and the capex for the year is about Rs 70 crore -- mainly for waste heat recovery system and maintenance.