 "India Cements Q3 results: Loss widens to Rs 307 cr on pricing, demand woes")
India Cements 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, said its losses before exceptional items and taxes, for the quarter ended December, widened to Rs 307 crore ($35.5 million), from a loss of Rs 50.24 crore 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 per cent 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 per cent to Rs 903 crore. ALSO READ: Dalmia Bharat Q3FY25 results: Net profit falls 77% to Rs 61 crore
During the reported quarter, India Cements incurred an exceptional cost worth nearly Rs 200 crore, consisting of impairment charges of certain assets and provisions for doubtful receivables from its units.
Earlier in the day, bigger rival Dalmia Bharat signalled optimism in cement demand and pricing going ahead after posting a slump in third-quarter earnings.
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Late in the reported quarter, India's competition watchdog approved market leader UltraTech's over-55 per cent 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.