Due to the unfavorable circumstances following COVID-19, Hetauda Cement Industry Limited, which operates under complete government control and is based in Hetauda, may have to incur a significant financial loss.
In the fiscal year 2020/21, the industry is expected to lose Rs 250 million, according to preliminary estimates. The industry has previously experienced a financial loss of roughly Rs 250 million in the fiscal year 2019/20.
Ram Babu Shah, the Industry’s Officiating Manager (Finance), stated that the Industry has been suffering a tremendous financial loss due to a lack of cement production and sale due to the negative condition following COVID-19 for the last two fiscal years.
Even in its peak season, the industry must face financial losses due to lower production and sales. The main selling season for cement is from April through July, which lasts four months. It has suffered significant financial losses in many fiscal years, with the exception of a few, due to a variety of factors.
The industry generates roughly Rs 2 billion in revenue each year, but its expenses exceed the revenue. It has been discovered that it spends the most money on salaries, raw material management, and repair and maintenance.