- Significant input cost increases, tough market conditions with severe competition and subdued realization for cement resulting in drop in margins and also due to one off expenses on account of provision for impairment of certain investments and advances.
- Low capacity utilization of only 64% coupled with low blended cement proportion of only 50% in the overall sales mix due to the increased infra activity in the region, the margins for the company for the year were squeezed.
- Input costs, which are subject to wide fluctuations in the wake of increase in price of fuel and power and the continuous threat caused by external factors like the Russia-Ukraine war affecting supply chain management.
- Supply overhang resulting in severe competition in the market place restricting the ability of the companies to pass on the cost increase to consumers.
- Ever changing environmental laws and the compliance thereon on emissions, sustainability, etc.
- Availability of good quality coal and petcoke at affordable prices.
- Logistics cost is also a cause of concern with the ever increasing petroleum products prices and regulatory mandates regarding zero carbon targets and limited availability of railway wagons for movement.
- Exposure to foreign exchange risk which is covered through hedging a portion of the same.
- Risks associated with information technology, including data loss and cyber security.
- Interest costs of long term borrowings have also been exposed to fluctuations in rate based on ratings.
The India Cements Limited
Greenhouse gas emissions & sustainability report data
In its 2022-04 to 2023-03 reporting, The India Cements Limited disclosed greenhouse gas emissions of 4.5M Metric tonnes of CO2 equivalent (Scope 1 & 2). By scope: Scope 1: 4.5M Metric tonnes of CO2 equivalent; Scope 2: 637.7K Metric tonnes of CO2 equivalent. Figures are as stated in the company's own report and may use different boundaries, units or methods (for example market-based vs location-based Scope 2), so compare with care.
GHG Emissions
4.5M Metric tonnes of CO2 equivalent (Scope 1 & 2)
2022-04 to 2023-03
Water Usage
2.9M kilolitres
2022-04 to 2023-03
Waste
156.58 metric tonnes
2022-04 to 2023-03
📊 Emissions by Scope (2022-04 to 2023-03)
| Scope | What it covers | Reported value |
|---|---|---|
| Scope 1 | Direct emissions from sources the company owns or controls (fuel combustion, company vehicles, process and fugitive emissions). | 4.5M Metric tonnes of CO2 equivalent |
| Scope 2 | Indirect emissions from purchased electricity, steam, heat and cooling. | 637.7K Metric tonnes of CO2 equivalent |
New to scopes? Read Scope 1, 2 and 3 emissions explained and market-based vs location-based Scope 2.
✅ Reported Environmental Achievements
- Overall blended cement proportion including special application based products like HSK and CSK was at 56%, up by 4% compared to the previous year, reducing carbon content.
- Clinker to cement ratio improved to 0.726 from 0.737 in the previous year.
- Installation of equipments for usage of alternate fuels at cheaper cost and reduce carbon emission being undertaken at all the units and usage of alternate fuel being stepped up.
- The overall quantity of Alternative Fuel and Raw materials (AFR) was around 0.21 lakh tons for the year as compared to 0.06 lakh tons used in the previous year.
- Sankari works received CII-Southern Region-EHS Excellence Bronze Award 2022-23.
- Various prizes in Mines Environment and Mineral conservation week celebrations for Environmental monitoring, sustainable development and afforestation.
🎯 Climate & Sustainability Targets
🔜 Short-term
- Completion of Sankarnagar Cement Mill project by the 2nd quarter of the current financial year.
- Completion of Waste Heat Recovery System at Chilamkur during the year.
📅 Medium-term
- Disposal of some non-core assets and steps are being taken to improve the operating parameters through refurbishment of some of the plants.
- Plans for installing Solar power plants in some of its surplus lands to reduce the overall cost of power.
🌱 ESG Focus Areas
Environmental, Health and SafetySustainabilityCommunity DevelopmentCircular EconomyClimate ChangeWater ConservationEmission Reduction