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India Cements Ltd
| Quarterly Financial Results Q3 FY 2025-26
Summary : The company reported significant losses, facing major legal challenges and regulatory changes impacting financials.
Quarterly Report Analysis & Insights
Financial Disclosures
- Cost of Materials consumed
- Employee benefits expense
- Finance costs
- Depreciation and Amortisation expense
- Power and Fuel
- Freight and Forwarding Expense
- Other Expenses
- Bad debts to Account receivable ratio (9M ended 31.12.2024 Standalone: 4.10%, Consolidated: 4.08%).
- Revenue from Operations (Standalone 9M: Rs. 3,255.91 Cr, Consolidated 9M: Rs. 3,256.04 Cr)
- Other Income (Standalone 9M: Rs. 47.95 Cr, Consolidated 9M: Rs. 61.81 Cr)
- Assets worth Rs. 120.34 Crores under attachment, no provision made.
- CCI penalty of Rs. 187.48 Crores, no provision made.
- Standalone Net Worth (31.12.2025): Rs. 9,595.13 Crores.
- Consolidated Net Worth (31.12.2025): Rs. 10,066.87 Crores.
- Standalone Debt-Equity ratio (31.12.2025): 0.12 times.
- Consolidated Debt-Equity ratio (31.12.2025): 0.12 times.
- Standalone Current Ratio (31.12.2025): 0.84 times.
- Consolidated Current Ratio (31.12.2025): 0.95 times.
- Standalone Net Loss after Tax (9M): Rs. 26.34 Crores.
- Consolidated Net Loss after Tax (9M): Rs. 125.22 Crores.
- Consolidated results include impairment on subsidiaries/associates.
Corporate Overview
- India (Chennai)
- Subsidiaries/Associates in Indonesia, Singapore
- Ongoing legal disputes regarding asset attachment and CCI penalty.
- Financial impact from new Labour Codes implementation.
- Primarily engaged in manufacture and sale of cement and cement related products.
- Formal announcement of financial results and regulatory compliance.
- Revenue from Operations
- Other Income
Risk Factors
- Assets worth Rs. 120 Cr attached.
- Rs. 187 Cr CCI penalty pending.
- Negative profit and earnings per share.
- Uncertain impact of new labor codes.
Key Drivers
- Redeemed Rs. 100 Cr commercial paper.
- Approved amalgamation of four subsidiaries.
- Divested equity in non-core assets.
- Monitoring new labor code implementation.
Auditor’s Report
- Review report, not an audit opinion; provides moderate assurance.
- Attention drawn to asset attachment of Rs. 120.34 Crores, disputed by company.
- Attention drawn to CCI penalty of Rs. 187.48 Crores, appealed to Supreme Court.
Board Commentary
- Assets worth Rs. 120.34 Crores attached by statutory authority.
- Penalty of Rs. 187.48 Crores imposed by Competition Commission of India (CCI).
- Financial impact from new Labour Codes implementation.
- Assets worth Rs. 120.34 Crores attached by statutory authority, matter sub-judice.
- CCI imposed Rs. 187.48 Crores penalty, appeal admitted by Supreme Court.
- New Labour Codes notified, impacting employee benefits and past service cost.
- Redeemed Commercial Paper of Rs. 100 Crores.
- Approved amalgamation of four wholly owned Indian subsidiaries.
- Approved sale of entire equity stake in subsidiary ICML and PT Adcoal.
Corporate Governance
- Audit Committee reviewed financial results.
Management Discussion & Analysis
Future Strategy
- Amalgamation of four wholly owned Indian subsidiaries approved.
- Divestment of equity stake in certain subsidiaries and associates.
Operational Focus Areas
- Monitoring developments and estimates related to new Labour Codes.
Performance Drivers
- Negative profit for the quarter and nine months.
- Significant exceptional items impacting profitability.
Risk Control Measures
- Company believes it has strong legal grounds to defend against asset attachment and CCI penalty.
- Actuarial valuation performed for Labour Codes impact, ongoing monitoring.
Critical Risks
- Assets worth Rs. 120.34 Crores attached by statutory authority.
- Penalty of Rs. 187.48 Crores imposed by Competition Commission of India (CCI).
- Uncertain financial impact from new Labour Codes.