Shree Cement reported its financial results for the April to June 2024 quarter, showing a significant drop in profit but a slight improvement in margins. The company’s profit after tax (PAT) nearly halved compared to the previous quarter. However, the margin saw a modest increase due to lower power and fuel expenses.

Key Financial Highlights

  • Revenue: ₹4,835 crore, down 3.3% from ₹4,999 crore in the previous quarter.
  • Net Profit: ₹318 crore, a 45% decrease from the last quarter and 46% below the forecast of ₹589 crore.
  • EBITDA: ₹917 crore, a slight decline from the previous quarter, with an improved margin of 19%, up by 30 basis points.
  • Depreciation: Increased by 108%, impacting the PAT.
Metric Q1 FY25 Q4 FY24 Change (%)
Revenue ₹4,835 crore ₹4,999 crore -3.3%
Net Profit ₹318 crore ₹582 crore -45.2%
EBITDA ₹917 crore ₹929 crore -1.3%
EBITDA Margin 19% 18.7% +0.3%
Depreciation Increased by 108% N/A N/A
Volumes 9.6 million tonnes N/A +8%
Premium Products Share 7.6% N/A N/A

Operational Performance

  • Volumes: Increased by 8% to 9.6 million tonnes.
  • Premium Products: Contributed 7.6% to total trade sale volume.

Expansion and Future Outlook

Shree Cement has made strides in expanding its manufacturing capabilities:

  • New Unit: Commissioned an integrated cement unit in Guntur, Andhra Pradesh, with a capacity of 3 million tonnes per annum (MTPA).
  • Ongoing Projects: Expansion projects in Jaitaran (6.0 MTPA), Kodla (3.0 MTPA), Baloda Bazar (3.4 MTPA), and Etah (3.0 MTPA) are progressing as scheduled.
Project Location Capacity
New Integrated Unit Guntur, Andhra Pradesh 3 MTPA
Ongoing Projects
– Jaitaran Rajasthan 6.0 MTPA
– Kodla Karnataka 3.0 MTPA
– Baloda Bazar Chhattisgarh 3.4 MTPA
– Etah Uttar Pradesh 3.0 MTPA

 

Neeraj Akhoury, Managing Director, emphasized the company’s focus on optimizing production processes and enhancing cost efficiencies despite challenging market conditions, including sluggish demand and extreme weather.

 

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TOPICS: Shree cement