The India Cements Ltd. announced its financial results for the quarter ended June 30 on Saturday, reporting a return to profitability primarily driven by a sharp improvement in operating performance and a significant reduction in one-time losses.
Investors will be watching whether the company's sharp improvement in profitability can be sustained in the coming quarters despite muted revenue growth. The latest quarterly earnings showed a strong recovery in operating performance, aided by a significant reduction in one-time losses and improved margins.
India Cement's Profitability Improves Sharply
The company reported a net profit of Rs 26.9 crore for the quarter, compared with a net loss of Rs 133 crore in the same period last year.
One-time losses also narrowed substantially to Rs 25.3 crore, down from Rs 124 crore a year ago, providing a major boost to the bottom line.
Margins Expanded Despite Flat Revenue
Revenue remained largely unchanged, slipping 0.6% year-on-year to Rs 1,019 crore from Rs 1,025 crore.
However, operating performance improved significantly. Ebitda surged 84.5% to Rs 155 crore, compared with Rs 84 crore in the corresponding quarter last year.
The Ebitda margin expanded to 15.2%, up sharply from 8.2% a year ago, reflecting better operational efficiency despite nearly flat revenue.
Shares Gain Over 17% In A Year
Shares of India Cements have been in focus for over a year, as the stock has gained over 17.18% during the period. In the past month itself, the stock was up by 6.5%.
In the past 52 weeks, the stock traded between Rs 329.75 and Rs 485.8 apiece on the NSE and has an adjusted price-to-earnings multiple of 144.28 times.
The market cap of the company as at the end of the preceding session was Rs 17,736.7 crore.
Shares of India Cement closed at Rs 410.3 apiece on Friday, gaining 3.13% during the trading session on NSE.
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