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Fitch assigns ‘Neutral’ rating to UltraTech post stake buy in India Cements
The agency expects consolidation in India’s cement industry to continue in the medium term.
The agency expects consolidation in India’s cement industry to continue in the medium term.
Radhakishan Damani, the founder of DMart chain of hypermarkets, sold around 24% stake in India Cements to Ultratech Cement via block deals yesterday.
UltraTech to buy up to 7.06 crore equity shares of India Cements at ₹267 per share, amounting to ₹1,885 crore.
This acquisition will be executed through UltraTech's wholly-owned UAE subsidiary, UltraTech Cement Middle East Investments Ltd (UCMEIL)
For the full year, the consolidated net profit after tax stood at ₹7,005 crore, up 38%, as against ₹5,064 crore in FY23.
UltraTech Cement says it will invest ₹32,400 crore towards ongoing capex over the next three years.
The Aditya Birla Group company proposes to increase its cement capacity by another 21.9 MTPA with a mix of brown field and green field projects.
Ultratech's revenue from operations stood at ₹16,012.13 crore, up 15% YoY as against ₹13,892.69 crore in the corresponding period of the previous year.
K.C. Jhanwar focused on innovation, digitisation, and long-term cash flows to help India’s largest cement manufacturer tide over market downturns.
The company's EBITDA (earnings before income, tax, depreciation and amortisation) stood at ₹3,223 crore in Q1 of FY23