However, compared to the same quarter in the previous fiscal year, when it was Rs 1,436.7 crore, consolidated revenue from operations in Q1FY25 fell by 28.5% to Rs 1,026.8 crore.
In Q1FY25, India Cements recorded a consolidated net profit of Rs 58.5 crore, a considerable improvement over the Rs 87 crore loss in the corresponding quarter the previous year. A one-time gain of Rs 241 crore from the sale of its Parli grinding mill in Maharashtra was a major factor in this comeback.
“The company has, in the month of April 2024, divested its grinding unit at Parli, Maharashtra, mobilizing a sum of Rs 315 crore,” India Cements said in an exchange filing. The sale of the unit generated a profit of Rs 240.68 crore, which is declared as an exceptional item.
However, compared to the same quarter in the previous fiscal year, when it was Rs 1,436.7 crore, consolidated revenue from operations in Q1FY25 fell by 28.5% to Rs 1,026.8 crore.
“A free fall in cement prices adversely affected the company’s capacity utilisation, resulting in suboptimal operating performance for the quarter ended June 30, 2024,” the company stated.
A sharp reduction in cement prices contributed to the decline in capacity utilisation, which resulted in a negative Ebitda of Rs 22 crore as opposed to a positive Ebitda of Rs 12 crore in the same quarter the previous year. Profit before tax, excluding the gain from the sale of assets, was Rs 81 crore, a significant increase from the Rs 99 crore loss recorded the previous year.
In light of these events and the impact of UltraTech Cement’s recent acquisition of a majority share, rating agency Care Edge has placed India Cements’ bank facilities on “Rating Watch with Positive Implications.”
The biggest cement producer in India, UltraTech Cement, said last month that its board had approved the acquisition of a 32.72% equity holding from India Cements’ promoters and associates. This came after UltraTech had already purchased a 22.77% interest in June 2024.
At Rs 366.50, India Cements’ shares concluded the day unchanged on the National Stock Exchange.
Before listing, be aware of these eight points about the OLA Electric IPO.
