Shree Cement Q2 Results: Profit more than doubles to Rs 447 crore; revenue up 19% YoY

Shree Cement‘s consolidated net profit more than doubled to Rs 447 crore in the three months to September 2023. This compares with Rs 183 crore in the previous year period.

Revenue from operations in the reporting second quarter jumped 19% year-on-year (YoY) to Rs 4,800 crore, compared with Rs 4,038 crore in the year-ago quarter.

Operating profit or EBITDA for the quarter jumped 64% YoY to Rs 886 crore. The total sales volume increased 10% year-on-year to 8.2 million tonnes in the July-September period.

The strong operating show was on the back of double-digit volume growth and improved operational metrics.

The capacity utilization during the quarter improved to 71% from 65% on YoY basis. The sale of premium products rose to 9.5% versus 7.5% of total trade sales YoY.

“In our transformation journey, we have made significant progress on establishing world-class operational benchmarks, enhanced brand equity, and reduced environmental footprints. We continually improve our volumes quarter over quarter,” said Neeraj Akhoury, MD, Shree Cement.

As the country enters into a multi-year strong demand cycle, the company said it is aggressively marching ahead on its expansion plans to achieve the target of going beyond 80 million tons capacity by 2028.The board approved the setting up of a brownfield cement grinding capacity of 3.40 million tonnes per annum capacity at the company’s existing facilities at Baloda Bazar district of Chhattisgarh with estimated capital expenditure of Rs 550 crore. This project is estimated to be completed by September 2025.

The work on the capacity expansion program already announced is said to be running as per schedule.

Shree Cement‘s share of green power in total power consumption increased to 58.6% in the second quarter as against 50.8% in the corresponding quarter of the previous year.

On Tuesday, the company’s shares closed 0.8% higher at Rs 26,613.25 on the NSE.

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