Table of Content
1. Revenue and Profit Growth:
Shree Cement, India’s third-largest cement group, exhibited robust financial performance with a 20% year-on-year (YoY) revenue growth and an impressive 165% increase in Profit After Tax (PAT).
2. Operational Highlights:
- Net revenue surged YoY by 20% from ₹4,069 crore to ₹4,901 crore.
- Total sale volume witnessed an 11% YoY increase from 8.03 million tonnes to 8.89 million tonnes.
- Capacity utilisation improved from 72% to 77% YoY.
- EBIDTA soared YoY by 74% from ₹708 crore to ₹1,234 crore.
- Sale of premium products rose to 9.5% compared to 7.2% of total trade sales YoY.
3. Management Commentary:
- Mr. Neeraj Akhoury, Managing Director of Shree Cement Ltd., attributed the strong performance to a comprehensive performance improvement plan. He highlighted the positive impact of strong volume growth, building premium products, accelerated channel expansion, and softening fuel prices.
- The company’s comprehensive re-branding program aims to enhance its positioning and customer satisfaction. Plans to commission Purulia and Nawalgarh plants are underway, aligning with capacity growth targets.
Additional Read: Q3 Results Dashboard
4. Capex Plans:
The company commenced commercial production from its integrated cement plant in Rajasthan and is progressing with 18 million tonnes capacity expansion projects. Additionally, plans include adding a cement mill of 3.0 million tonnes per annum capacity at the upcoming plant in Ras, Rajasthan, increasing total India cement capacity to around 75 million tonnes.
5. Sustainability Initiatives:
- The company’s green power generation capacity stood at 474 MW, with plans for further expansion.
- Notable achievements include an increase in green power share in total consumption and a rating upgrade by DJSI in Corporate Sustainability Assessment.
- Efforts continue to improve TSR levels and alternative raw material and fuel consumption.
6. Brand Architecture and RMC Foray:
- The company revamped its brand identity with ‘Bangur Cement’ as the master brand and launched a new premium product – Bangur Magna. A multi-media advertising campaign accompanied this initiative.
- In line with diversification plans, the company initiated setting up 3 RMC plants, with plans for 5 units by the year-end.
7. Dividend Declaration:
The Board declared an interim dividend of ₹50/- per share for the year 2023-24.
8. Cement Market Outlook:
Cement demand in India is expected to remain robust, driven by investments in infrastructure and large-scale housing projects, aligning with the country’s economic development goals.
Financial Highlight (Standalone)
₹ in crore
Particulars | Quarter Ended | % Change | |||
| 31st December, 2023 | 31st December, 2022 | 30th September, 2023 | YoY | QoQ | |
| Net Revenue from Operations | 4,901 | 4,069 | 4,585 | 20% | 7% |
| Operating Profit (EBIDTA) | 1,234 | 708 | 870 | 74% | 42% |
| Profit after Tax | 734 | 277 | 491 | 165% | 49% |
| Cash Profit | 1,074 | 686 | 830 | 56% | 29% |
Additional Check: Shree Cement Share Price
About Shree Cement
Shree Cement is one of India’s top 3 cement producers with an installed capacity of 50.4 MTPA in India and abroad. It was founded in Beawar, Rajasthan, in 1979 and is now headquartered in Kolkata. It offers a range of products, brands, and services with a focus on efficiency, sustainability, and innovation. It is also one of the lowest cost producers in the country and has a global benchmark in operational efficiency. It has a vision to reach 80 MTPA by 2030 and has announced four planned capacity expansion projects. It has also been recognised as one of India’s most sustainable companies by the World Economic Forum.
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Sources: https://www.bseindia.com/xml-data/corpfiling/AttachLive/540fdff4-9735-43e2-a61f-0f6bf278b2f7.pdf
