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India Cements Receives Notice from Competition Commission of India

Updated on: Dec 18, 2024, 12:57 PM IST
India Cements has received a notice from the Competition Commission of India (CCI) concerning UltraTech Cement’s proposed acquisition of equity shares.
India Cements Receives Notice from Competition Commission of India
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India Cements has acknowledged the receipt of a notice dated 5th December 2024 from the Competition Commission of India (CCI) regarding UltraTech Cement Limited’s proposed acquisition of equity shares in India Cements, held by promoters and others.

Regulatory Response and Market Context

This acquisition is based on Share Purchase Agreements executed on 28th July 2024. The company is currently preparing its response to the CCI.

India Cements is confident that it can address any concerns raised by the CCI, emphasising that the cement market remains highly competitive.

The company has committed to providing the necessary clarifications to facilitate the review process.

In July 2024, UltraTech Cement revealed its plan to acquire a 32.72% stake in India Cements from the promoters and their affiliates for ₹3,954 crore. This strategic move is aimed at enhancing its presence in the rapidly growing and highly competitive southern cement market, with a particular focus on Tamil Nadu.

Q2FY25 Financial Highlights

India Cements, reported a significant rise in its net loss to ₹240 crore for the quarter ended September 30, 2024, compared to a net loss of ₹81 crore in the same quarter last year.

This decline in performance was primarily due to a decrease in revenue, which dropped to ₹1,017 crore from ₹1,222 crore, driven by falling cement prices.

The company’s operating performance improved with a 17% increase in volumes compared to the first quarter.

However, the sharp drop in selling prices resulted in a 13% decline in net plant realisation (NPR), impacting margins. This led to a negative EBITDA of ₹154 crore for the second quarter, compared to an EBITDA of ₹14 crore in the same period last year.

India Cements Share Price Performance

On December 09, 2024, India Cements Share Price traded 3.51% lower at ₹347.55 at 11:00 AM on the NSE. The stock opened at ₹357.05 lower from its previous close of ₹360.20.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

Published on: Dec 9, 2024, 11:06 AM IST

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