India Cements Suffers Major Loss Amid Price Fluctuations

India Cements Ltd (ICL) reported a widening net loss of Rs 339.13 crore for Q2 of 2024 due to declining cement prices. Revenue fell 18.4% despite improved volume. The industry faced challenges like elections, heatwaves, and floods, leading to weak demand and increased competition.

India Cements Ltd (ICL), a leading player in the cement industry, has reported a significant widening of its net loss for the second quarter ending September 2024. The net loss stood at Rs 339.13 crore, nearly four times the Rs 80.07 crore recorded in the same period last year, as revealed in its BSE filing.

The steep decline in selling prices hit the company's margins hard, even though operating performance saw a 17 percent increase in volume compared to the first quarter of 2024. The company's revenues from operations went down by 18.4 percent to Rs 1,031.80 crore, further intensifying the financial strain.

Factors like protracted elections, adverse weather conditions, and muted demand across the industry exacerbated ICL's challenges. The overall cement demand remained weak during the period, leading to heightened competition and pricing pressures, particularly in the southern regions. Shares of ICL showed minimal change, closing at Rs 360.30 on the BSE.

(With inputs from agencies.)