India’s Orient Cement profit edges up 1.2% in March

India’s Orient Cement reported a slight increase in net profit for the fourth quarter ending March, driven by higher sales volume despite a challenging market environment, as reported on Wednesday.

Net profit rose 1.2 per cent to 682 million rupees ($8.2 million) compared to the same period last year.

Revenue from operations edged up 1.4 per cent to 8.88 billion rupees, marking the slowest growth since September 2022 due to lower cement prices.

Intense competition and aggressive discounting in the seasonally strong first quarter led to a roughly five per cent decline in cement prices, reaching a two-year low.

Total expenses rose marginally (0.4 per cent) due to higher fuel costs, packing, and freight expenses.

Analysts anticipate a slowdown in cement demand during the first half of fiscal 2025 due to upcoming general elections and a potentially strong monsoon season.

The Aditya Birla group, owner of India’s leading cement producer UltraTech Cement, is reportedly in advanced talks to acquire the top shareholder’s stake in Orient Cement.

This acquisition, if completed, would strengthen Aditya Birla’s presence in central, western, and southern India.