Udaipur, India – January 28, 2025: Udaipur Cement Works Limited (NSE: UDAICEMENT, BSE: 530131) has announced its unaudited financial results for Q3 FY2024-25, reporting ₹369.34 crore in Revenue and ₹3.87 crore in net profit, marking a turnaround from the previous quarter's loss. The company also confirmed that it is awaiting regulatory approvals for its merger with parent company JK Lakshmi Cement Limited, which was proposed in July 2024.
Key Financial Highlights – Q3 FY2024-25 (Standalone)
- Revenue from Operations: ₹369.34 crore (YoY increase of 23.2% from ₹299.60 crore)
- Total Income: ₹370.68 crore
- Profit Before Tax (PBT): ₹5.59 crore
- Net Profit (PAT): ₹3.87 crore (compared to a net loss of ₹(18.33) crore in Q2 FY25)
- Earnings Per Share (EPS): ₹0.07 per share.
Nine-Month Performance (April – December 2024) (Standalone)
- Total Revenue: ₹988.27 crore (YoY increase from ₹815.24 crore)
- Profit Before Tax (PBT): ₹(33.56) crore
- Net Profit (PAT): ₹(24.74) crore
- EPS: ₹(0.11) per share.
Key Business Highlights
- Revenue Growth Driven by Higher Cement Demand:
- An increase in infrastructure and housing sector activity boosted cement sales.
- Revenue is up 23.2% YoY despite cost pressures on raw materials and energy.
- Cost & Expense Breakdown:
- Power & Fuel costs rose to ₹115.26 crore, impacting margins.
- Transport and logistics expenses at ₹62.76 crore due to increased dispatch volumes.
- Raw material costs surged to ₹55.98 crore from ₹48.60 crore in Q3 FY24.
- Merger with JK Lakshmi Cement Awaiting Approvals:
- Udaipur Cement's Board approved the proposed merger on July 31, 2024.
- Awaiting clearance from statutory and regulatory authorities.
- Once approved, Udaipur Cement will be fully integrated into JK Lakshmi Cement.
Strategic Developments & Key Announcements
- No Subsidiary, Associate, or Joint Venture Entities: The company operates as a standalone cement manufacturer.
- The merger is expected to enhance operational synergies, improve cost efficiencies, and expand market presence.
Management Commentary
Vinita Singhania, Chairperson, Udaipur Cement Works, stated:"Our revenue growth is a positive indicator of increasing demand in the cement sector. While profitability remains a challenge, we are optimistic about the long-term benefits of our upcoming merger with JK Lakshmi Cement.".
Market Outlook & Investor Takeaways
- Positive revenue growth is driven by increased cement demand and infrastructure development.
- Merger with JK Lakshmi Cement will provide scale advantages and financial synergies.
- Cost pressures from power, fuel, and logistics remain key challenges.
