UltraTech unit India Cements posts wider Q3 loss on pricing, demand woes

India Cements

21/01/2025 14:02

Jan 21 (Reuters) - India Cements  ICMN.NS  reported a
wider quarterly loss on Tuesday, hurt by soft demand and
still-weak prices of the construction material, and also took
one-time impairment charges.
    The company, owned by UltraTech Cement  ULTC.NS , said its
losses before exceptional items and taxes, for the quarter ended
December, widened to 3.07 billion rupees ($35.5 million), from a
loss of 502.4 million rupees a year ago. 
    Cement prices, which had been falling for most of last year,
were little changed through the quarter. Data from brokerages
Nomura and Ambit showed that pan-India average cement price for
the December quarter was still 11% lower on year.
    Soft demand, triggered by a labour crunch in the company's
core south Indian market, dragged the company's revenues down by
17% to 9.03 billion rupees.
    During the reported quarter, India Cements incurred an
exceptional cost worth nearly 2 billion rupees, consisting of
impairment charges of certain assets and provisions for doubtful
receivables from its units.
    Earlier in the day, bigger rival Dalmia Bharat  DALB.NS 
signalled optimism in cement demand and pricing going ahead
after posting a slump in third-quarter earnings.
    Late in the reported quarter, India's competition watchdog
approved market leader UltraTech's over-55% stake buy in the
company, one among the host of deals struck in the sector since
ports-to-power Adani group's foray in 2022.
    UltraTech is set to report its quarterly results later this
week.
    
($1 = 86.5680 Indian rupees)

 (Reporting by Hritam Mukherjee in Bengaluru; Editing by Vijay
Kishore)
 ((Hritam.Mukherjee@thomsonreuters.com; X: @MukherjeeHritam;))