Shares of Kesoram Industries Ltd were trading in the red and 1% lower on 11 July after the company announced its quarterly earnings for the April-June quarter. 

In its quarter report, the BK Birla Group company reported a net loss of Rs 62 crore during the quarter under review, which is almost double the Rs 32.4 crore net loss reported during the same quarter of the previous fiscal year.

Moreover, the company’s revenue during the quarter stood at Rs 879 crore, marking a 12% year-on-year decline from Rs 999 crore reported in the corresponding period of the previous fiscal year.

The company has reported net losses for 12 consecutive quarters, along with erratic fluctuations in revenue. 

The operational performance of the company also remained weak during the quarter with its earnings before interest, tax, depreciation, and amortisation (EBITDA) during the quarter at Rs 70.9 crore, from Rs 131.7 crore reported in the same quarter last year. The EBITDA margins during the quarter contracted to 8% from 13.2% reported in Q1FY24. 

The company has also planned the demerger of its cement business into UltraTech Cements. They have also secured various regulatory approvals, including Competition Commission of India. An application has also been filed before the Calcutta bench of the National Company Law Tribunal by the company, seeking the transfer of its cement business by a scheme of arrangement. 

According to P. Radhakrishnan, full-time director & CEO of Kesoram, they expect the demerger process to be completed by December, if not earlier. 

However, at 3:30 pm, the shares of Kesoram Industries closed 0.29% higher at Rs 211.76 on NSE.

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