Shares of India Cements rise 3% as Q2 losses shrink

 Shares of India Cements rise 3% as Q2 losses shrink

According to the corporation, India Cements plans to sell 80–90 acres of land for Rs 100 crore to pay for this capital expenditure.

The management of India Cements plans to invest Rs 3,500 crores in capital during FY24 and FY25.

India Cements's stock increased 3.2% in early trading on November 2 as the cement player's losses decreased to Rs 81 crore from Rs 137.6 crore in the same quarter last year.

From a year earlier, India Cements' revenue decreased by 4.62 percent to Rs 1,264.39 crore.

The reduction of volume and total cost, according to Nuvama Institutional Equities, hurt the bottom line. Volumes were 2.37 MT, down 11% sequentially, while total costs were down 14% year over year.

Due to the company's reduced profits and financial crisis, sales quantities were limited. Positively, gasoline prices have decreased, and management anticipates that this advantage will last until the end of the next quarter.

The management anticipates that volumes will increase from 5.04 MT in H1FY24 to 5.5 MT in the second half of the fiscal year.

The management plans to invest Rs 3,500 crores during FY24–25, with an emphasis on increasing cost effectiveness. According to the corporation, this will be used for further operational enhancements as well as for grinding (in certain facilities, replacing roller mills), pyro processing method changes, and other plant modifications.

To pay for this capital expenditure, India Cement anticipates making Rs 100 crore from the sale of 80–90 acre pieces of land.

India Cements was up 2.53 percent from the closing price of the previous session at 9.50 am on the NSE, trading at Rs 204.85.