ITD Cementation Falls 7% on Q4 Miss

Shares in ITD Cementation fell nearly 7 per cent to hit low of Rs 636.20 on Wednesday after the company reported disappointing earnings for the fourth quarter ending December 31 on Tuesday.

The construction company reported a consolidated net profit of Rs 54 crore in the December quarter against a net profit of Rs 2.5 crore in the same quarter last year.

Its consolidated revenue increased 36 per cent annually to Rs 514 crore against Rs 378 crore.

ITD Cementation's net profit was boosted by an exceptional item of Rs 96 crore, which the company booked on account of change in its depreciation accounting policy.

If the exceptional item is removed then the company sits on net loss for the just concluded quarter.

Besides, profitability of the company has also declined in the quarter. Its EBITDA margin or gross profit margin fell 788 basis points annually to 4 per cent in the December quarter.

ITD Cementation stocks had rallied over 35 per cent in last one week, which is also one of the reasons why the stock had corrected today, analysts say.

Shares in ITD Cementation closed 6.2 per cent lower at Rs 640 apiece, underperforming the broader Nifty, which ended flat on Wednesday.