Kesoram Industries Dips 1.5% In a Week: Know More About Incoming Demerger Into Ultratech Cement

The day after Kesoram Industries released its Q1 FY25 earnings, which showed an increase in net loss year over year, the company's shares saw a 1.5 percent decline in last week

Net Financials

In Q1 FY25, the BK Birla Group company reported a net loss of Rs 62 crore, almost twice as much as it had in the same quarter the previous fiscal year amounting to Rs 32.4 crore.

Kesoram Industries reported a net loss of Rs 32.4 crore for the corresponding quarter, as per a regulatory filing from the company. Compared to the same period in the previous fiscal year, when it was Rs 999 crore, the company's operating revenue fell by 12 per cent to Rs 879 crore.

EBITDA Financial Q1

Operating EBITDA decreased by 46.2 per cent to Rs 70.9 crore in the first quarter of this fiscal year compared to Rs 131.7 crore in the same period last year.

In the reporting quarter, the EBITDA margin was 8 per cent, down from 13.2 per cent during the same period in the previous fiscal year. Earnings before interest, tax, depreciation, and amortization are known as EBITDA.

Demerger of cement business

By the end of this fiscal year, the demerger of Kesoram Industries Ltd.'s cement business into UltraTech Cements is anticipated to have concluded, ending a significant business venture for one of Calcutta's most renowned companies.

Following approval from multiple regulatory bodies, such as the Competition Commission of India, Kesoram filed an application on May 20 at the National Company Law Tribunal's Calcutta bench, requesting the transfer of the cement business through a scheme of arrangement.

Share proportion after demerger

For every 52 shares held in the company, shareholders of Kesoram will receive one share of UltraTech Cement, which is managed by Kumar Mangalam Birla. On November 30, 2023, the boards of the two companies approved the arrangement plan.

Share Price

Shares of Kesoram Industries were trading on the Indian bourses at Rs 209.18, a meager 0.72 per cent at 11.10 am.