Udaipur Cement stock price slips over 5% after June quarter results

Udaipur Cement slips in trade: Shares of Udaipur Cement Works dropped as much as 5.06 per cent to hit an intraday low of Rs 42 per share. 

The fall in the share price came after the company witnessed a mixed set of June quarter (Q1FY25) results. 

The company reported a loss of Rs 10.3 crore in the June quarter of financial year 2025 (Q1FY25), as opposed to a profit of Rs 4.2 crore in the same quarter last year (Q1FY24). Udaipur Cement had posted a profit of Rs 19.8 crore in the last quarter of FY24 (Q4FY24).

The cement company’s revenue, however, climbed nearly 32 per cent on a year-on-year (Y-o-Y) basis to Rs 324.8 crore in Q1FY25, as opposed to Rs 246.3 crore in the same quarter a year ago (Q1FY24). 

Notably, the company had reported a revenue of Rs 358 crore in the last quarter of the previous fiscal (Q4FY24), marking a drop of 9.3 per cent quarter-on-quarter (Q-o-Q).

At the operating front, the company’s earnings before interest, tax and depreciation (Ebitda), also known as operating profit, rose 41.1 per cent Y-o-Y to Rs 39 crore in Q1FY25, from Rs 27.6 crore in the June quarter of financial year 2024 (Q1FY24).

Consequently, Ebitda margin, or operating profit margin, surged 80 basis points (bps) to 12 per cent in the June quarter of the current fiscal, as against 11.2 per cent in the same quarter a year ago.

Additionally, the cost of material consumed (input cost) also soared 19.5 per cent Y-o-Y to Rs 43.5 crore in Q1FY25, as opposed to Rs 36.4 crore in Q1FY24.

The earnings per share also shifted into the negative territory as it stood at -0.18 in Q1FY25, as opposed to 0.14 in Q1FY25, and 0.35 in Q4FY24.

Udaipur Cement Works Limited (UCWL), incorporated in 1993, and headquartered in Jaipur, Rajasthan, operates as a subsidiary of JK Lakshmi Cement Limited. 

UCWL specialises in manufacturing cement marketed under the brand name 'Platinum Heavy Duty Cement'.

The company serves markets across northern (Haryana, Delhi, Punjab, Uttarakhand, Rajasthan), western (Gujarat, Maharashtra, Madhya Pradesh), and eastern regions (primarily Chhattisgarh; with additional sales in Odisha, Bihar, and West Bengal). 

It strategically leverages synergies within the JK Organisation by cross-selling cement brands under JKLC and its subsidiaries to meet growing regional demand and optimise logistical efficiencies.

UCWL has established a robust distribution network encompassing approximately 650 cement dealers across Rajasthan, Gujarat, and Madhya Pradesh. 

The market capitalisation of Rs 2,373.88 crore, according to Bombay Stock Exchange (BSE). The company falls under the SmallCap category.

At 2:13 PM, shares of the company were trading 4.25 per cent lower at Rs 42.36 . In comparison, BSE Sensex rose 0.04 per cent to 80,697.42 levels.