Orient Cement Faces Profit Slump Amid Acquisition Moves

Orient Cement Ltd reported a significant decline in profits for the March quarter and fiscal year, amid a year of financial hurdles and an impending acquisition by Ambuja Cements. The company also declared a final dividend, reflecting strategic maneuvers amidst financial turbulence.

CK Birla group subsidiary, Orient Cement Ltd, announced a 38.3% decline in net profit, registering Rs 42.07 crore for the March quarter compared to Rs 68.19 crore in the same period last year. This downturn coincides with a broader dip in revenue.

The firm's revenue from operations shrank 7.07% to Rs 825.18 crore from Rs 888.02 crore a year prior, while total expenses saw a minor reduction of 2.61%, totaling Rs 764.96 crore for the March quarter.

Meanwhile, Orient Cement is undergoing a significant ownership change. An agreement was made with Ambuja Cements to purchase a 46.80% shareholding, post-approval from the Competition Commission of India. The transaction remains pending, with the promoter group still holding shares.

(With inputs from agencies.)