BURNPUR - Burnpur Cement

📊 NSE: BURNPUR 🏢 Cement - North India 📅 Last Updated: 12/13/2025 20:02

💰 Financial Performance

Revenue Growth by Segment

The company reported 0% revenue for the quarter ended September 30, 2025, as all revenue-generating assets and plants were sold. Historically, the company operated in a single segment (Cement).

Geographic Revenue Split

Not disclosed in available documents as the company currently has no operational revenue; however, future expansion is targeted at Jharkhand and West Bengal.

Profitability Margins

Net profit margin for FY 2023-24 was -0.74%, representing a negative change of 53% compared to -0.48% in the previous financial year. The decline is attributed to finance costs of INR 73.04 Cr and a loss on asset sales of INR 26.13 Cr.

EBITDA Margin

EBIT was negative INR 28.12 Cr for FY 2023-24, primarily due to a loss of INR 26.13 Cr from the sale of entire movable and immovable assets. Return on capital employed was -0.066 times, a negative change of 2012% from -0.003 times YoY.

Capital Expenditure

The company sold its entire property, plant, and equipment, which stood at a book value of INR 0.15 Cr as of September 30, 2025, down from INR 0.17 Cr in March 2025. No specific INR value for planned CAPEX is disclosed, though revival plans are mentioned.

Credit Rating & Borrowing

Total borrowings stood at INR 522.13 Cr as of September 30, 2025, an increase of 7.9% from INR 483.82 Cr as of March 31, 2025. Finance costs charged on a cumulative basis for FY 2023-24 were INR 73.04 Cr.

⚙️ Operational Drivers

Raw Materials

Limestone and clinker (standard for cement), but currently represent 0% of costs as manufacturing has ceased following the sale of all plants.

Import Sources

Not disclosed in available documents as operations are currently suspended.

Capacity Expansion

Current installed capacity is 0 MTPA as all plants have been sold. The company is exploring avenues to acquire new plants in Jharkhand, West Bengal, and Asansol to revive production.

Raw Material Costs

Raw material costs are currently 0% of revenue due to the cessation of manufacturing operations.

Manufacturing Efficiency

Capacity utilization is 0% as of September 30, 2025, due to the sale of all production facilities.

Logistics & Distribution

Distribution costs are 0% of revenue as there are no products to distribute.

📈 Strategic Growth

Expected Growth Rate

Growth Strategy

The company intends to achieve growth by acquiring new cement plants in Jharkhand, West Bengal, and Asansol. This strategy aims to revive production after the total sale of previous assets by lenders (UVARCL) under the SARFAESI Act.

Products & Services

Cement bags (historically), though no products are currently being manufactured or sold.

Brand Portfolio

Burnpur Cement.

Market Expansion

Targeting the states of Jharkhand and West Bengal for new plant locations to re-enter the regional cement market.

Market Share & Ranking

Not disclosed; currently negligible due to lack of production.

Strategic Alliances

The company is under the influence of UV Asset Reconstruction Company Limited (UVARCL), which exercised powers under the SARFAESI Act to sell company assets.

🌍 External Factors

Industry Trends

The Indian cement industry is expected to grow due to its role in building 'New India.' Demand is projected to outpace capacity additions, providing an opportunity for revival if the company can secure new assets.

Competitive Landscape

The industry is highly competitive with significant capacity additions announced by major players, making re-entry challenging for a company with a negative net worth.

Competitive Moat

The company currently lacks a sustainable moat as it has no operational assets; any future moat would depend on cost leadership or regional brand strength in West Bengal/Jharkhand.

Macro Economic Sensitivity

Highly sensitive to infrastructure spending and construction demand in Eastern India, which is projected to grow faster than announced capacity additions.

Consumer Behavior

Shift toward branded cement and infrastructure-grade products in the Eastern Indian market.

⚖️ Regulatory & Governance

Industry Regulations

The company is subject to the SARFAESI Act, 2002, under which lenders have seized and sold assets. It also faces regulatory oversight regarding director appointments and age limits.

Taxation Policy Impact

The company has deferred tax assets of INR 0.036 Cr (INR 3.64 Lakhs) as of September 30, 2025.

Legal Contingencies

The company is filing an appeal before the Securities Appellate Tribunal (SAT) against fines levied by NSE and BSE for non-compliance with Regulation 17(1A) of SEBI LODR regarding the continuation of a director (Mrs. Poonam Srivastava) beyond 75 years of age without a special resolution.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the ability of the company to acquire new plants and restart operations given a negative equity of INR 532.77 Cr. Potential impact is a 100% risk of business failure.