India Cements Q2 Losses Triple to ₹240 Crore Post UltraTech Buyout

12 Nov 2024 , 10:43 AM

India Cements Ltd., now owned by UltraTech Cement Ltd., reported a net loss of ₹240 crore for the quarter ending in September, a significant increase from the ₹81.4 crore loss in the same quarter last year.

Quarterly revenue dropped by 17% year-on-year to ₹1,017 crore, down from ₹1,222 crore during the same period last year. India Cements recorded an EBITDA loss of ₹163 crore, a stark contrast to the positive ₹7.7 crore EBITDA reported in the previous year’s September quarter.

UltraTech Cement acquired a 32.7% stake in India Cements in July 2024, investing over ₹4,000 crore, which triggered an open offer at ₹390 per share. This acquisition followed UltraTech’s initial purchase of a 22.77% stake in June 2024 at ₹268 per share.

The promoters of India Cements exited due to high debt, exceeding ₹2,000 crore, coupled with weak operational performance marked by low utilization and declining EBITDA per tonne, falling below ₹200. UltraTech’s acquisition aims to stabilize and potentially revamp India Cements’ operations amidst challenging market conditions.