India Cements has posted a mixed performance on the financial side for the quarter ending January-March of fiscal 2024-25 (Q4 FY25). The company has posted a decline of 3.11% in its revenue, which stood at Rs 1,197.3 crore, compared to Rs 1,235.74 crore in the same period last year.
Despite this, the Aditya Birla Group-owned cement company managed to post a consolidated net profit of Rs 14.68 crore in the quarter, a robust recovery from the Rs 60.55 crore net loss in the corresponding quarter of the previous fiscal year.
But the overall income of the company, along with other income, declined by 2.52% to Rs 1,255.66 crore in Q4 FY25. Overall cost reduced marginally to Rs 1,313.2 crore during this period. For the whole financial year ended March 31, 2025, India Cements managed to reduce its net loss to Rs 143.88 crore from a loss of Rs 227.34 crore in FY24. But its overall income for the year reduced by 13.81% to Rs 4,357.41 crore.
India Cements too has seen a huge structural shift. It was turned into a subsidiary of India's biggest cement manufacturer, UltraTech Cement, after UltraTech bought the promoter stake in December 2024.
In a strategic move, the board of the firm has approved a draft Scheme of Amalgamation that will merge its three subsidiaries—ICL Financial Services, ICL Securities, and ICL International—together with India Cements Infrastructures into the parent company, The India Cements Limited. This merging would be effective from 1st January, 2025, and all the share capital of the amalgamating companies shall be cancelled.
The cement industry, in general, has suffered from a range of problems, including muted demand and increased competition due to new capacity addition by industry leaders. Cement prices fell by around 7% year-on-year from April-Jan FY25, according to a rating agency Ind-Ra report.
Although prices experienced a modest turn-around after November 2024, they still remained lower compared to last year. Ind-Ra has projected that FY25 will see the steepest annual decline in cement prices in the past decade.
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