India Cements share gained over 6% after the company declared over 13-fold rise in its consolidated net profit at Rs 69.21 crore during the second quarter against Rs 5.07 crore in the July-September period a year ago.
Company's revenue dropped 14.18% to Rs 1,069.72 crore as against Rs 1,275.44 crore in the corresponding quarter of the last fiscal.
Following the earnings update, India Cements share price gained 6.26% to the intraday high of Rs 128.95 on BSE against the earlier close of Rs 121.35. The stock also hit an intraday high of Rs 121.90 during today's session, after opening at Rs 122.50.
Share of India Cements has gained over 3% in one week and almost 5% in one month. India Cements share is trading higher than 5, 20, 50, 100 and 200-day moving averages.
Market cap of the firm stood at Rs 3,777.61 crore as of today's session.
Total expenses in the second quarter fell 22.83 per cent to Rs 980.83 crore as against Rs 1,271.02 crore in the corresponding period of the previous fiscal.
Company's capacity utilisation in the first quarter was at 35 per cent which improved to 53 per cent in Q2.
"Cement prices which started improving from the month of April'20 sustained during the second quarter under review with only marginal aberrations in some of the southern states. These improved prices along with the cash and carry a policy of the company helped in improving the profitability and the liquidity in these troubled times," said N Srinivasan, vice-chairman, India Cements.
"The impact on the cement industry has not been consistent throughout India. While north, central and eastern India saw a substantial growth in demand which led to an impressive performance by companies located in that region, western India was impacted by Covid-19 and Gujarat and Maharashtra bore the brunt of the pandemic," said Srinivasan.
"Now, after a good monsoon and with people having learnt to cope with Covid-19 and with decreased pandemic activity, we see revival in western India also which can lead to improved demand in the two quarters to come," he added.