Shree Digvijay Cement Company has released its audited financial results for the fiscal year ending March 31, 2025, revealing a mixed performance with declining annual figures but showing signs of improvement in the latest quarter.

Annual Performance

The cement manufacturer reported a decrease in its annual financial metrics:

The significant decline in EBITDA and profit after tax indicates challenging market conditions faced by the company during the fiscal year.

Quarterly Improvement

Despite the annual downturn, Shree Digvijay Cement showed signs of recovery in its most recent quarter:

• Sales volume increased by 10% quarter-on-quarter, reaching 3.94 lacs tons.

This uptick in sales volume suggests a potential turnaround in the company's operational performance.

Dividend Announcement

In a move that may please shareholders, the Board of Directors has recommended a dividend:

• Dividend per equity share: Rs 1.50 (15% on face value of Rs 10)

This dividend announcement, despite the challenging year, indicates the company's commitment to returning value to its shareholders.

Future Outlook

Shree Digvijay Cement is focusing on growth and expansion:

• A new grinding unit expansion is in progress
• The expansion is expected to be commissioned in Q1 FY2026

This strategic move could potentially boost the company's production capacity and market presence in the coming fiscal year.

Upcoming Annual General Meeting

The company has scheduled its 80th Annual General Meeting for August 29, 2025, where shareholders will have the opportunity to discuss the company's performance and future strategies.

As Shree Digvijay Cement navigates through a challenging period, the combination of strategic expansion plans and signs of quarterly improvement may provide a foundation for potential growth in the upcoming fiscal year.

In a significant development in the Indian cement industry, Shree Digvijay Cement Company Limited is set to undergo a major ownership change. True North Fund VI LLP, the current promoter, has agreed to sell up to 50.10% of the company's equity to India Resurgence Fund entities, potentially reshaping the competitive landscape in the sector.

Key Highlights of the Transaction

• Stake Sale: True North Fund VI LLP has entered into a share purchase agreement to sell up to 7,42,71,009 shares, representing 50.10% of Shree Digvijay Cement's equity, to India Resurgence Fund entities.
• Minimum Acquisition: The deal ensures a minimum acquisition of 45.01% of the share capital by the India Resurgence Fund entities.
• Regulatory Approval: The transaction is subject to regulatory approvals, including clearance from the Competition Commission of India.
• Mandatory Open Offer: The stake sale will trigger a mandatory open offer to public shareholders, as required by SEBI regulations.

Strategic Distribution Agreement

Alongside the ownership change, Shree Digvijay Cement's board has approved a significant distribution agreement with Hi-Bond Cement (India) Private Limited. Key aspects of this agreement include:

• Exclusive Rights: Shree Digvijay Cement will gain exclusive 10-year cement distribution rights from Hi-Bond Cement.
• Value: The distribution agreement is valued at approximately INR 600.00 crore annually.
• Refundable Deposit: Shree Digvijay Cement will provide a refundable deposit of up to INR 400.00 crore to Hi-Bond Cement.
• Board Representation: Shree Digvijay Cement will gain the right to nominate one director on Hi-Bond Cement's board.

Options Agreement

An options agreement has also been approved, giving Shree Digvijay Cement the potential to acquire 100% of Hi-Bond Cement in the future.

Impact and Future Outlook

Upon completion of these transactions:

1. India Resurgence Fund will acquire control of Shree Digvijay Cement.
2. The board of Shree Digvijay Cement will be reconstituted.
3. India Resurgence Fund entities will be reclassified as promoters of the company.

This deal marks a significant shift in the ownership and strategic direction of Shree Digvijay Cement. The partnership with Hi-Bond Cement through the distribution agreement could potentially enhance Shree Digvijay's market presence and distribution capabilities.

Investors and industry observers will be keenly watching how these developments unfold, particularly in terms of potential synergies, market strategies, and the impact on Shree Digvijay Cement's competitive position in the Indian cement market.

As the cement industry continues to evolve, this transaction could signal further consolidation and strategic realignments in the sector. Stakeholders will be eager to see how the new ownership and partnerships influence Shree Digvijay Cement's growth trajectory and market performance in the coming years.