Orient Cement's Profit Plunge and Adani Acquisition Developments

Orient Cement, part of the CK Birla Group, reported a massive 90.5% drop in net profit for Q2 2024, alongside a significant revenue decrease. The company is currently under acquisition proceedings by Adani Group, which has announced an open market offer for shares acquisition starting December 2024.

Orient Cement Ltd, a CK Birla Group-owned entity, has witnessed a dramatic 90.5% drop in its net profit to Rs 2.32 crore for the second quarter ending September 2024.

Compared to last year's Rs 24.62 crore net profit for the same period, revenue from operations has dipped by 24.5%, with current figures at Rs 544.02 crore. Total expenses saw a 20% decline, standing at Rs 544.47 crore.

In parallel, Adani Cement, controlled by billionaire Gautam Adani, solidified a binding agreement to acquire Orient Cement, valued at Rs 8,100 crore. This includes Ambuja Cements acquiring a substantial 46.8% of OCL shares from existing promoters, alongside an open market offer for an additional 26% stake set to commence on December 16, 2024.

Shares of Orient Cement closed at Rs 336.90 on Friday at BSE, showing a slight decrease of 0.94% from the previous close.

(With inputs from agencies.)