India Cements down in red

The market is pretty disappointed with the earnings of India Cements. The company, which is a

subsidiary of UltraTech Cement, posted a 18% (YoY) drop in consolidated net sales at Rs.941 crore. PBT was a loss of Rs.144 crore but PAT came in the black at Rs.196 crore v/s Rs.0.67 crore and this was only account of an exceptional credit of Rs.366 crore.

On a standalone basis, net loss widened to Rs.429 crore v/s loss of Rs.16.5 crore (YoY).

The company achieved a cement capacity utilisation of 57% during the quarter and domestic sales volume grew 5%.

UltraTech acquired 32.72% of the equity share capital of the company in Dec’24, and its aggregate shareholding in the company has increased to 55.49%. Accordingly, India Cement is now a subsidiary of UltraTech.

The stock is currently the top loser on the BSE; from its close of Rs.348.30, it opened lower at Rs.345.55 and slipped down further to an intraday low at Rs.303.45.