Research analysts feel that the impact of the recent Supreme Court ruling on the financials of cement companies would depend on the cash flow of these companies.

While hearing the case on cement price cartelisation, the apex court asked the 11 companies to abide by the Competition Appellate Tribunal directive to deposit 10 percent of the penalty imposed by the Competition Commission of India (CCI).

Thus, the 11 companies will have to make a provision of  Rs 669 crore in the June quarter for the Rs 6,698-crore penalty levied on them by the CCI.

Earlier, the CCI penalised these firms and asked them to pay a fine of Rs 6,698 crore on grounds of indulging in cartelisation. These firms later appealed against the order at the Competition Appellate Tribunal.

In May 2013, the tribunal ordered the companies to deposit 10 per cent of the fine before it could hear their appeal. Unhappy with the demand, cement manufacturers moved the Supreme Court. The apex court asked these companies to abide by the order of the tribunal.

Already cement companies are facing muted demand and rising cost. Amidst this situation, the provisioning may have a serious impact on the net profit of these firms in the June quarter, some analysts feel.

However, some analysts feel that the financial impact would depend on the cash flow of the companies.