India Cements has announced a net consolidated loss of Rs 735.8 million for the quarter ending on June 30, 2023. This is in stark contrast to the net consolidated profit after tax of Rs 838.3 million achieved in the same quarter of the previous fiscal year, as reported in a filing with the Bombay Stock Exchange (BSE).During Q1 FY24, the company's net consolidated total income amounted to Rs 14.43 billion, indicating a decline of 5.30 per cent from the Rs 15.24 billion recorded in the corresponding quarter of the previous year.The lower selling price of cement in the reviewed quarter was a direct result of intense competition stemming from an excess supply of the product. However, the quarter also saw a reduction in variable costs due to a decrease in fuel prices. Unfortunately, this reduction in costs was offset by the decline in revenue, resulting in narrower profit margins. Consequently, these reduced margins had a substantial impact on liquidity, which in turn affected sales volume for the quarter. The overall sales volume remained nearly unchanged when compared to the same quarter of the prior year.Cement sales during the reviewed quarter amounted to only 26.57 lakh tons, a decrease from the 27.85 lakh tons sold in the preceding quarter. This decrease in sales can be attributed solely to the company's liquidity constraints resulting from lower profit margins and losses. It is worth noting that India Cements has been gradually enhancing its performance over the past four quarters. This performance improvement is evident in the reduction of variable costs over time, with the reviewed quarter showing a decrease of Rs 168 per ton compared to the final quarter of the previous year. This reduction in variable costs directly contributed to a positive EBIDTA for the quarter. The fuel costs, which reached a high of Rs 2.95 per Kcal in the third quarter of the previous year, have since decreased to around Rs 2.38 per Kcal for the quarter under review. Although the overall variable costs for the quarter were slightly 2 per cent lower than the first quarter of the previous year, amounting to approximately Rs 52 per ton, sales realisations were 5 per cent lower than the previous year, at around Rs 268 per ton.In a bid to enhance liquidity and meet essential capital expenses, the company has devised plans to monetise select non-core assets. This strategic move is intended to bolster operational performance and ensure the fulfillment of necessary financial requirements.