India's Orient Cement posts Q4 profit rise
01/05/2024 10:46
BENGALURU, May 1 (Reuters) - India's Orient Cement
ORCE.NS reported a higher fourth-quarter profit on Wednesday,
helped by an increase in sales volume.
WHY IT'S IMPORTANT
While strong infrastructure and real estate demand benefitted
Indian cement makers in the past few quarters, analysts estimate
a softer demand in the first half of fiscal 2025 due to general
elections and a likely healthy monsoon.
In the seasonally strong January-March quarter, cement
makers resorted to aggressive discounts to meet fiscal-end
volume targets amid tough competition, triggering a roughly 5%
decline in cement prices sequentially to a two-year low.
BY THE NUMBERS
The company's net profit rose 1.2% to 682 million rupees
($8.2 million) in the quarter ended March.
Revenue from operations climbed 1.4% to 8.88 billion rupees,
its slowest growth since September-quarter 2022 due to lower
prices.
Total expenses were up 0.4%, mainly led by higher fuel
costs, packing and freight expenses.
GRAPHIC
(Figures in percentage)
WHAT'S NEXT
The Aditya Birla group, which owns India's top cement
producer UltraTech Cement ULTC.NS , is reportedly in advanced
talks to buy the top shareholder's stake in Orient Cement.
The deal, if goes through, will boost the group's market
share in central, western and southern regions of the country.
As of March, top shareholders - C K Birla, family and
affiliated firms - held nearly 38% stake in Orient Cement.
($1 = 83.4620 Indian rupees)
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January-March stock performance of Orient Cement and peers https://tmsnrt.rs/4aYwnra
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(Reporting by Hritam Mukherjee and Rama Venkat in Bengaluru;
Editing by Eileen Soreng)
((Hritam.Mukherjee@thomsonreuters.com; Twitter:
@MukherjeeHritam;))