Hemadri Cements to consider voluntary liquidation

The Board of Andhra Pradesh-based Hemadri Cements is likely to consider viability of operations and examine the proposal for Voluntary Liquidation of the Company under Section 59 of the Insolvency and Bankruptcy Code, 2016, in a meeting of Board of Directors to be held on 18 June 2025, the company informed the exchanges on 14 June 2025.

Hemadri Cements has temporarily suspended the productions during in 2024. According to the company’s annual report for 2024-25, the significant shift in market demand led to an excess inventory, requiring a pause in production to prevent overstocking and financial strain. In addition to it, the shortages in raw materials, delays in shipments, or other logistical issues contributed to a disruption in the production process. The Company is presently exploring all the possibilities to overcome the aforesaid concerns.

Hemadri Cements Limited is facing significant financial challenges, as highlighted in its Integrated Financials Filing for the quarter and fiscal year ended March 31, 2025. The company has been incurring continuous losses since the financial year 2022-23, leading to a complete erosion of its net worth as of March 31, 2025.

The auditor’s report emphasizes this critical situation, noting that the company “temporarily suspended operations in August 2024 due to adverse market conditions and high production costs.” Despite these severe issues, the financial statements have been prepared on a “going concern basis,” with management considering the suspension temporary and taking steps to improve operations. The company has also received financial support and assurances of future funding from group companies.

For the year ended March 31, 2025, Hemadri Cements reported a Net Loss after Tax of ₹27 crore, significantly higher than the ₹11 crore loss in the previous year. Total income for the same period was ₹57 crore, while total expenses amounted to ₹70 crore. The company’s equity turned negative, standing at ₹3.80 crore as of March 31, 2025, a stark contrast to the positive equity of ₹23 crore a year prior. Borrowings increased substantially from ₹1.6 crore to ₹20 crore in non-current liabilities. The company’s cash and cash equivalents, however, saw an increase from Rs 0.35 crore to ₹1.51 crore

Hemadri Cements Ltd is located in Jaggayyapet in Andra Pradesh. The plant was commissioned in March 1985.

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