India Cements Shares in Focus: Sales Volume Grew 5% During Q3FY25

India Cements Limited, a subsidiary of UltraTech Cement Limited, reported its financial results for the quarter ending December 31, 2024.

India Cements Q3FY25 Financial Performance

• Consolidated Net Sales for Q3 FY25 amounted to ₹940.81 crores, compared to ₹1,144.46 crores in the same period of the previous year.
• Profit Before Interest, Depreciation, and Tax (PBIT) for Q3 FY25 was a loss of ₹ (143.73) crores, as opposed to a profit of ₹78.15 crores in Q3 FY24.
• Profit After Tax (PAT) stood at ₹196.22 crores, a significant improvement from ₹0.67 crores in the previous year.
• The company’s net debt decreased significantly to ₹886 crores.

India Cements’ Operations

During Q3 FY25, the company recorded a cement capacity utilization of 57%. On a consolidated basis, domestic sales volume grew by 5% year-on-year (YoY).

Change in Ownership

On 24th December 2024, UltraTech Cement acquired 32.72% of the equity share capital of The India Cements Limited. This acquisition increased UltraTech’s total shareholding in the company to 55.49%, in line with Regulation 22(2) of the Securities and Exchange Board of India (SEBI) (Substantial Acquisition of Shares and Takeovers) Regulation, 2011. As a result, The India Cements Limited has become a subsidiary of UltraTech Cement.

India Cements Outlook

The company is poised for growth through its synergies with UltraTech Cement. Key drivers of future success include:

• Introduction of new systems and processes: These will bring operational efficiencies and enhance business performance.
• Economies of scale and cost optimisation: The company is expected to benefit from enhanced operational efficiencies.
• Wider distribution network: The strengthened network will improve reach and market penetration.
• Enhanced credit rating: India Cements has already been upgraded to a AAA credit rating, which will help optimize overall costs.

With increasing government spending on infrastructure and rising demand in housing markets, India Cements is well-positioned to expand its presence in its core markets. The company aims to contribute significantly to the overall growth of the country.

On January 22, 2025, India Cements shares opened at ₹345.55 and touched the day low of ₹339.65 at 09:20 AM.

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