In Tuesday’s intra-day trade on BSE, the shares of India Cements slipped 6% to Rs 258 on profit booking after the company sold its Madhya Pradesh limestone mine and land for Rs 477 crore to Sajjan Jindal-owned JSW Cement.

India Cements said it has entered into a share purchase contract with JSW Cement and has denied its entire shareholding held in Springway Mining Private Limited (SMPL) for Rs 476.87 crore. SMPL owns limestone posture land at Pawai Tehsil, Panna District, and would set up Cement Plant at Gaisabad Tehsil, Damoh District in Madhya Pradesh. India Cements started working at the 3 mtpa plant in MP 2021 with land acquisition.

In May, India Cements indicated selling some of its lands to pare debt. As of March 31, 2022, the company had a net debt of Rs 3,039 crore. This increased by 1.43% in 2021 when the net debt was Rs 2,996 crore. At 09:45 AM, the stock was trading 5% lower at Rs 262.35, compared to a 0.31% decline in the S&P BSE Sensex. Despite today’s decline, India Cements has outdone the market in the past month by gaining 13%, against a 3.5% fall in the benchmark index. In the past three months, it has rallied 55%, compared to a 6% rise in the Sensex.

In its FY22 annual report, India Cements said the Capex-motivated fiscal path of the government, with a 35% jump in the overall Capex plan, is likely to boost the economy. Further, the Southern State’s initiative in giving a push to housing, infrastructure development, irrigation, metro rail, and road buildings predicts well for the industry.

“Cement demand can be anticipated to endure strong and on track with the augmented Capex and construction action. However, the mounting cost pressure caused by an upsurge in the global price of fuel and oil continues to significantly impact the bottom line. Hence, one can be thoughtfully optimistic for enhancement in cement industry performance shortly,” the company said.