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India Cements has announced a standalone net profit of ₹57 crore for the June 2024 quarter, supported by an exceptional income. The company reported a net loss of ₹75 crore in the year-ago period.
against ₹99 crore in the year-ago period.
In April 2024, the company divested its grinding unit at Parli, Maharashtra, mobilising ₹ 315 crore. The profit arising on the sale of the unit amounting to ₹240.68 crore is disclosed as an exceptional item in this June quarter. As a result, profit before tax stood at ₹78 crore against a loss before tax of ₹99 crore.
The company’s revenue dropped significantly to ₹972 crore ( ₹1,393 crore) on the back of lower cement sales and price pressures. The cement and clinker volume reported a 26 per cent decline in Q1FY25 at 19.61 lakh tonnes compared to 26.66 lakh tonnes. EBIDTA was negative at ₹22 crore against a positive ₹12 crore, due to a sharp decline in selling prices.
UltraTech acquisition
India Cements’ promoters entered into a Share Purchase Agreement on July 28, 2024 with Ultra Tech Cement Ltd to sell their stake of equity shares in the company at a price of ₹390 per equity share subject to necessary regulatory approvals.
UltraTech is in the process of acquiring the entire shareholding of 32.72 per cent from India Cement’s promoter group and it is effectively expected to gain a majority stake considering its previous holding of 22.77 per cent shares in India Cements, taking UltraTech’s total holding to 55.49 per cent.
A few days ago, CARE Ratings put the ratings assigned to the bank facilities of The India Cements on ‘Rating Watch with Positive Implications’ following the acquisition proposal by UltraTech. The ratings derived strength from India Cements’ long-standing position in the southern markets, integrated nature of operations with the presence of captive power plants, it said.
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