India Cements reported a widened standalone net loss of Rs 240 crore for the September quarter, a significant increase from the Rs 81.39 crore loss in the same period last year. Quarterly revenue also declined 17% year-over-year to Rs 1,017 crore, contributing to a 1% drop in the company’s stock price as investors reacted to the earnings report.
The cement maker recorded a notable EBITDA loss of Rs 163 crore, a sharp contrast to the positive Rs 7.7 crore EBITDA it achieved a year earlier. India Cements stated it anticipates receiving funds through loan repayments from subsidiaries and associates, which it expects will help ease financial pressures on its operations.
In a strategic move earlier this year, UltraTech Cement announced plans to acquire a 23% stake in India Cements. India Cements confirmed on November 8 that it had signed a Share Purchase Agreement with UltraTech on July 28, involving the sale of 8.8 crore shares, or 28.42% of its equity capital, at Rs 390 per share. This transaction, along with an ‘Open Offer,’ is pending approvals, including from the Competition Commission of India (CCI).
Following the deal’s announcement, former Managing Director N. Srinivasan addressed India Cements’ employees, citing cost pressures, intense competition, and challenges in monetizing non-core assets as factors that influenced the decision to sell the stake. Despite the quarterly dip, India Cements’ shares have risen 36% year-to-date.
The company had anticipated a volume recovery post-June, following a slower start to the fiscal year due to extended monsoon conditions and general elections. India Cements has also reiterated plans to generate liquidity by monetizing non-core assets, including surplus land, to support operations. Earlier this year, it sold its grinding unit in Parli, Maharashtra, to UltraTech and entered into agreements to use excess land for solar power generation, aiming to cut power costs and improve financial resilience.
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Source: Moneycontrol
