Orient Cement Q2 Results: Profit Drops 90.5%, Adani Acquires
Orient Cement Ltd (OCL), a subsidiary of the CK Birla Group, has reported a sharp decline in its Q2 results for FY24, with a 90.5% drop in net profit, which stood at Rs 2.32 crore, compared to Rs 24.62 crore during the same period in the previous year. The Orient Cement Q2 results also showed a significant dip in revenue, falling by 24.5% to Rs 544.02 crore from Rs 720.57 crore in Q2 FY23.
Despite the decline in Orient Cement Q2 results, the company managed to reduce its total expenses by 20%, which stood at Rs 544.47 crore during the quarter under review. However, the company’s overall financial performance has been impacted by a series of strategic changes in its corporate structure.
In a major development, Adani Cement, part of the billionaire Gautam Adani-led Adani Group, announced a binding agreement to acquire OCL for Rs 8,100 crore. The acquisition will see Adani Group’s subsidiary, Ambuja Cements, purchase 46.8% of OCL’s shares from its current promoters and public shareholders. Furthermore, Adani Cement has initiated an open offer to acquire an additional 26% stake from the market at a price of Rs 395.40 per share. The offer is set to open on December 16, 2024.
After the announcement, Orient Cement’s shares settled at Rs 336.90 on the Bombay Stock Exchange (BSE), reflecting a modest decline of 0.94% compared to the previous trading session.
This acquisition and the subsequent Orient Cement Q2 results have marked a pivotal moment for both Adani Cement and Orient Cement as the deal signifies major consolidation within India’s cement industry.
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