Orient Cement Share Price Declines After Company Posts Lacklustre Earnings

Orient Cement Ltd.'s share price declined as much as 1.59% following the release of its fourth-quarter earnings report, which revealed weak financial results. The company's net profit for the quarter fell by 38.3% to Rs 42 crore, compared to Rs 68 crore in the same period last year.

The cement maker's revenue also saw a decline of 7.1% to Rs 825 crore from Rs 888 crore year-on-year. This reduction in revenue reflects the challenging market conditions and competitive pressures faced by Orient Cement.

Additionally, the company's Earnings Before Interest, Taxes, Depreciation, and Amortisation or EBITDA dropped by 30.4% to Rs 103 crore, down from Rs 148 crore in the previous year. The Ebitda margin also contracted to 12.5% from 16.7%, indicating a decrease in operational efficiency and profitability.

The lackluster earnings report has led to a negative sentiment among investors, resulting in a decline in Orient Cement's share price.

The scrip fell as much as 1.59% to Rs 352 apiece. It pared losses to trade 0.46% lower at Rs 356.15 apiece, as of 09:30 a.m. This compares to a 2.06% advance in the NSE Nifty 50 Index.

It has risen 76.92% in the last 12 months. Total traded volume so far in the day stood at 3.2 times its 30-day average. The relative strength index was at 66.

Out of eight analysts tracking the company, three recommend a 'hold,' and five suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an downside of 23.7%