India Cements Reports High Loss for Q3, declares Exceptional Loss

India Cements posted a vast increase in loss for the quarter ending December 2024 when its net loss tripled to Rs. 429 crore, versus Rs 16.5 crore in the corresponding period last fiscal. The revenues of the company contracted by a humongous 17% at Rs 903 crore from Rs 1,082 crore in Q3 FY24.

The bottom line of the company for the December 31, 2024 quarter was dented by the heavy losses that came in due to the extraordinary charge of Rs. 190 crore. This is an unwarranted expense overshadowing the routine nature of activities undertaken by the company, leading to loss well above expectations.

Shares of India Cements fell 8% to Rs. 348 per share on the National Stock Exchange (NSE) on January 21 after the news.

The company will witness a radical change in its ownership. In December, India’s Competition Commission cleared a Rs. 7,000-crore deal wherein UltraTech Cement, driven by billionaire Kumar Mangalam Birla, would gain control of India Cements. The deal is also for buying a 32.72% stake in India Cements from the promoters and their groups at Rs. 3,954 crore.

Apart from the stake purchase, UltraTech has also made an open offer worth Rs. 3,142.35 crore to buy an additional 26% of India Cements issued to its public shareholders. This would further consolidate UltraTech’s position in the regional cement market and project it as the leader in the southern market.

India Cements is facing a disappointment in results for Q3; however, the strategic takeover by UltraTech puts it on a completely different trajectory.