India Cements Share in Focus after Reporting Wider FY25 Loss; Plans Subsidiary Merger Amid Financial Restructuring
The India Cements Limited (ICL), a key player in South India’s cement sector, announced its audited financial results for the quarter and year ending March 31, 2025. The company reported a deeper net loss for the year, strategic corporate actions, and maintained its financial compliance with statutory regulations.
Financial Performance Highlights:
- Standalone Revenue: ₹4,138.75 crore (down from ₹4,996.75 crore in FY24)
- Standalone Net Loss: ₹667.55 crore (widening from ₹202.52 crore loss in FY24)
- Consolidated Revenue: ₹4,148.78 crore
- Consolidated Net Loss: ₹667.54 crore
- Total Assets: Consolidated assets rose to ₹13,830 crore, up from ₹10,701 crore in FY24.
Expenses remained high, driven by power, fuel, freight, and employee costs, along with increased finance costs. The company’s operational cost pressures outpaced income growth, despite gains in other income streams.
Dividend Update for India Cements Share:
India Cements did not declare any dividend for FY25, reflecting the challenging operating environment and its focus on strengthening the balance sheet.
Amalgamation of Subsidiaries:
In a major strategic move, the Board has approved the merger of four wholly-owned Indian subsidiaries — ICL Securities Ltd, ICL Financial Services Ltd, ICL International Ltd, and India Cements Infrastructures Ltd — into India Cements Ltd. The effective date for the amalgamation is set as January 1, 2025, subject to regulatory approvals.
Corporate Restructuring and Subsidiary Changes:
During the year, Coromandel Electric Company Ltd and Coromandel Travels Ltd ceased to be subsidiaries, while Raasi Cement Ltd, Unique Receivable Management Pvt Ltd, and Coromandel Sugars Ltd were declassified from associate status.
Legal Matters of India Cements Share
The statutory auditors issued unmodified (clean) audit reports on both standalone and consolidated accounts, confirming compliance with SEBI (LODR) Regulations. However, emphasis of matter was drawn on two key legal issues:
- Attachment of assets worth ₹120.34 crore under the Prevention of Money Laundering Act (2015), still under litigation.
- Penalty of ₹187.48 crore imposed by the Competition Commission of India (CCI), with the case currently pending before the Supreme Court.
No financial adjustments have been made for these disputes pending the final outcomes.
Cash Flow Movements:
- Operating Activities: Net cash generated stood at ₹60.21 crore.
- Investing Activities: Massive positive cash flow of ₹1,730.09 crore, mainly from the sale of assets and investments.
- Financing Activities: Net outflow of ₹1,729 crore, due to repayments of borrowings and finance costs.
Despite a tough operating year, India Cements ended FY25 with cash and cash equivalents of ₹74.85 crore, up from ₹13.56 crore the previous year.
Click Here To Read Official File of India Cements Results
Future Outlook for India Cements Share:
The management reiterated its focus on operational improvements, cost optimization, and legal resolutions. The proposed amalgamation of subsidiaries is expected to simplify the corporate structure and unlock synergies in the future.
Also Read: HCL Technologies Dividend: Investors Cheer as HCL Tech Rolls Out ₹18 Interim Dividend
About India Cements:
Founded in 1946, India Cements Limited is now a subsidiary of UltraTech Cement Limited. Headquartered in Chennai, it remains one of India’s oldest and most prominent cement manufacturers, with strong roots in Southern markets.
India Cements Share Price
India Cements shares faced modest selling pressure on April 27, 2025, slipping 0.87% to close at ₹288.50 on the NSE. During the trading session, the stock fluctuated between a low of ₹283.90 and a high of ₹292.70. Opening slightly stronger at ₹292.50, the scrip struggled to maintain momentum amid broader market volatility. The previous day’s close of India Cements share stood at ₹291.05.
Disclaimer: This content is about intended solely for educational and informational purposes and should not be interpreted as financial or investment advice. The information presented is derived from publicly available sources and independent analysis; however, its accuracy or completeness is not guaranteed. Readers are encouraged to conduct their own due diligence and seek guidance from a professional financial advisor before making any investment decisions. Neither the author nor stoxmail.com assumes responsibility for any financial losses or investment actions taken based on this article.