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New Delhi: The India Cements Ltd (ICL) on Friday reported widening of consolidated net loss to Rs 339.13 crore for the second quarter ended September 2024, impacted by a decline in selling price.
It had incurred a loss of Rs 80.07 crore in the July-September period a year ago, according to a BSE filing from ICL, in which rival Aditya Birla group firm UltraTech Cement has announced to acquire a majority stake.
Revenue from operations of ICL was down 18.4 per cent to Rs 1,031.80 crore as against Rs 1,264.39 crore in the corresponding quarter last fiscal.
"The performance of the company for the quarter and half year ended 30th September 2024, was adversely affected due to a free fall in cement prices," said ICL in its earning statement.
Though the operating performance improved in the second quarter with a 17 per cent increase in volume as compared to April-June, the sharp decline in selling prices resulted in a drop in margins that led to a negative EBITDA of Rs 154 crore in Q2, it added.
Total expenses were at Rs 1,322.98 crore, down 3.8 per cent.
Total income, which includes other income, was down 6.41 per cent to Rs 1,190.75 crore.
"The quarter and the half year ended September 30, 2024, under review were very tough for the industry in general caused by various factors like the prolonged elections in the country for more than two months in the first quarter, heat waves and floods that hit some parts of the country etc," it said.
The cement demand as such was very weak and the growth was muted, with a contraction in the first quarter and marginal growth of 3 per cent in the second quarter, said ICL.
"This tepid growth resulted in severe competition for market share causing pricing pressure and the selling price of cement aberrated particularly in the southern regions where there is a huge supply overhang," it added.
Shares of ICL settled at Rs 360.30 per scrip on BSE, down 0.01 per cent.