India Cements Reports Rs 240 Cr Q2 Loss; Stake Sale To UltraTech Progresses

Leading cement maker India Cements posted a standalone net loss of Rs 240 crore for the September quarter, a significant increase from last year's Rs 81.39 crore loss. Revenue fell 17 per cent year-on-year to Rs 1,017 crore, which led to a 1 per cent dip in the company's share price following the results.

India Cements expressed optimism that anticipated repayments from subsidiaries and associates would help ease its operational challenges. The company has been grappling with debt exceeding Rs 2,000 crore, declining operational performance, low utilisation levels, and EBITDA per tonne below Rs 200.

In a notable strategic move, India Cements is progressing with a stake sale to UltraTech Cement. The Chennai-based firm disclosed it had entered into a Share Purchase Agreement on 28 July, selling 8.80 crore shares, or 28.42 per cent of its paid-up capital, to UltraTech at Rs 390 per share. The acquisition is pending approval from the Competition Commission of India (CCI) and other regulatory bodies.

After initially hitting the day's low post-results, India Cements shares showed some recovery, trading at Rs 356.5. The stock has exited the Futures & Options segment.