Leading cement manufacturer India Cements' standalone net loss in the September quarter has widened to Rs 240 crore compared to last year's loss of Rs 81.39 crore, while the revenue came in lower by 17% on year at Rs 1,017 crore, the company said, sending shares sharply lower by a percent in a kneejerk reaction.
The cement maker reported an EBITDA loss of Rs 163 crore, compared to a positive EBITDA of Rs 7.7 crore a year ago.
India Cements said it expects substantial amounts by way of return of loans and advances from subsidiaries and associates, which is expected to 'alleviate the stress to the operations of the company'.
In June 2024, UltraTech Cement announced the decision to acquire about 23 percent stake in India Cements. The Chennai-based cement maker informed on November 8 that it entered into a Share Purchase Agreements with UltraTech on July 28, agreeing to sell 8.80crore shares or 28.42% of paid-up equity capital at Rs 390 per share. The acquisition and the 'Open Offer' are subject to requisite approvals, including from the Competition Commission of India (CCI).
Soon after the deal, in an address to the employees of India Cements, N Srinivasan, the then Managing Director had said that cost pressures, price wars, and the inability to monetise land parcels had added to the pressure on the company, eventually leading to the stake sale.
Shares of India Cements were down by over a percent in trade after the quarterly results, but on YTD basis were higher by 36%.
The company had said that it was expecting volumes to improve after June this year, after seeing a subdued first half due to a prolonged monsoon and general elections.
India Cements has in the past stated its plan to monetise some of its non-core assets, including land, to improve the liquidity. It divested its grinding unit at Parli, Maharashtra to UltraTech in April, and also entered into an agreement for solar power plants on some of its surplus lands to reduce cost of power.
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