Orient Cement Ltd has reported a significant decline in its consolidated net profit for the third quarter ended December 31, 2024. The company’s net profit fell by 77.5% to Rs 10.14 crore, compared to Rs 44.99 crore in the same quarter last fiscal. The decline in net profit was attributed to lower sales, with consolidated revenue from operations decreasing to Rs 643.35 crore from Rs 751.31 crore in the year-ago period.
Total expenses for the quarter also decreased to Rs 629.3 crore from Rs 681.44 crore in the same period last year. The company is awaiting regulatory and statutory approvals for the acquisition of a 46.8% stake in it by Ambuja Cements Ltd, which was announced in October 2024. Ambuja Cements had agreed to acquire the stake for an equity value of Rs 8,100 crore.
The decline in Orient Cement’s net profit is a significant setback for the company, which is a part of the C K Birla family-owned business. The company’s financial performance has been impacted by various factors, including the decline in sales and the increase in expenses. However, the company is expected to benefit from the acquisition by Ambuja Cements, which is expected to provide it with access to new markets and resources.
Overall, the decline in Orient Cement’s net profit is a significant development in the company’s financial performance, and it will be closely watched by investors and analysts in the coming months.