Did India Cements Witness a Revenue Decline?
Click to start listening
Synopsis
India Cements faces a challenging fiscal quarter with a revenue decline of 3.11%. Despite this, they report a net profit, showcasing resilience in a tough market. The company is undergoing significant structural changes, including a merger of subsidiaries, as it adapts to industry pressures. Discover the implications of these financial results.
Key Takeaways
- 3.11% revenue decline in Q4 FY25.
- Net profit of Rs 14.68 crore.
- Merger of subsidiaries approved.
- Total income decreased by 13.81% for the fiscal year.
- Industry challenges persist with falling cement prices.
Mumbai, April 27 (NationPress) India Cements has announced a decline of 3.11 percent in its revenue, totaling Rs 1,197.3 crore for the January-March quarter of the fiscal year 2024-25 (Q4 FY25), compared to Rs 1,235.74 crore during the same timeframe last year.
Despite this, the company, which is part of the Aditya Birla Group, reported a consolidated net profit of Rs 14.68 crore for the quarter ending March 2025, reversing a net loss of Rs 60.55 crore from the previous year.
The total income, inclusive of other earnings, also saw a slight drop of 2.52 percent, reaching Rs 1,255.66 crore in Q4.
India Cements' total expenses reduced marginally to Rs 1,313.2 crore during this quarter. For the entire financial year concluding on March 31, the company successfully minimized its net loss to Rs 143.88 crore from Rs 227.34 crore in FY24.
However, total income for the year experienced a significant decline of 13.81 percent, amounting to Rs 4,357.41 crore. Recently, India Cements became a subsidiary of UltraTech Cement, the largest cement producer in India, following UltraTech's acquisition of the promoter's stake in December 2024.
Additionally, the board of India Cements has sanctioned a draft Scheme of Amalgamation aimed at merging its three subsidiaries — ICL Financial Services, ICL Securities, and ICL International — along with India Cements Infrastructures, into The India Cements Limited.
This merger will come into effect from January 1, with the entire share capital of the merging entities being cancelled.
The broader cement sector has been encountering challenges. A report by rating agency Ind-Ra indicates that cement prices plummeted by around seven percent year-on-year (YoY) between April and January FY25, primarily due to weak demand and escalating competition from new capacities introduced by leading firms.
Although cement prices saw a modest recovery following November 2024 with the resurgence of construction activities, they still remained below last year's figures.
Ind-Ra anticipates FY25 to register the steepest annual decline in cement prices over the past decade.
Point of View
It is crucial to acknowledge the resilience demonstrated by India Cements despite facing revenue challenges. Their strategic decisions, including the merger of subsidiaries and adaptation to market conditions, highlight the company's commitment to navigating a competitive landscape. We will continue to monitor their progress and the overall health of the cement industry closely.
NationPress
22/05/2025
Frequently Asked Questions
What was India Cements' revenue for Q4 FY25?
India Cements reported a revenue of Rs 1,197.3 crore for the January-March quarter of fiscal year 2024-25.
Did India Cements make a profit in the last quarter?
Yes, India Cements posted a consolidated net profit of Rs 14.68 crore for the quarter ended March 2025.
What are the major challenges facing the cement industry?
The cement industry has been facing challenges such as declining prices due to weak demand and increased competition.
What significant changes is India Cements undergoing?
India Cements is merging three subsidiaries into The India Cements Limited, effective January 1.
How has India Cements' total income changed?
The total income, including other income, dropped by 2.52% to Rs 1,255.66 crore in Q4 FY25.
