India Cements Faces Financial Challenges

India Cements, a subsidiary of UltraTech Cement, has reported a significant increase in its standalone net loss, reaching Rs 428 crore in the quarter ended December 31, 2024. This marks a substantial rise from the Rs 16 crore loss recorded in the same quarter of the previous year.

On a quarter-over-quarter basis, the company's losses have also escalated from Rs 240 crore in the quarter ended September 30, 2024. The total income for India Cements saw a decline of 16.5%, dropping to Rs 913 crore in Q3 FY25 from Rs 1,098 crore in the corresponding quarter last year.

Strategic Decisions Amid Financial Struggles

In response to these financial challenges, India Cements has made the decision to sell its shareholdings in two of its subsidiaries, Coromandel Electric Company (CECL) and Coromandel Travels (CTL). Consequently, these investments have been reclassified as 'assets held for sale'.

This quarter's results are the first to be announced by India Cements following its acquisition by UltraTech Cement. Post-acquisition, UltraTech's aggregate shareholding in India Cements has increased to 55.5%, making India Cements a subsidiary of UltraTech.

In a significant move last July, Birla, India’s largest building materials maker, entered into a deal with India Cements vice-chairman & MD N Srinivasan and his family to acquire their cement business, marking a pivotal moment in the company's history.