Shree Cement Q2FY23 PAT down -67.42% at Rs183cr as power, fuel and freight costs spike in the quarter

15 Oct 2022 , 05:20 PM

Shree Cement Ltd reported 19.70% growth in total sales revenues for the September 2022 quarter on consolidated basis at Rs4,038cr. Sequential revenues were down -8.54%.

During the quarter, the company saw its current ratios go down from 1.68 to 1.43 on yoy basis.

The inventory turnover of the company fell from 7.12 times to 5.57 times on a yoy basis while the debtors turnover also was lower at 20.20 compared to 25.12 an year ago.

Clearly, this points to pressure on working capital of the company. While the debt equity ratio has been flat, there has been a general deterioration in the coverage ratios.

The interest coverage ratio fell from 18.86 to 10.06 on a yoy basis while the debt service coverage ratio fell from 5.22 to 2.64 on a yoy basis.

Consolidated Profit after tax (PAT) for September 2022 quarter was down -67.42% at Rs183cr as power, fuel and freight costs added up substantially. For example, on a yoy basis, the power and fuel costs nearly doubled from Rs727 crore to Rs1,378 crore.

Even the freight costs went up from Rs714 crore to Rs868 crore on a yoy basis across almost minor expansion in volumes. Operating margins fell sharply from 33% to 18% yoy while the net margins at 4.54% were sharply lower compared to 16.68% in the year ago period. Even on sequential basis, the PAT margins were lower by 179 basis points.

Financial highlights for Sep-22 compared yoy and sequentially

	Shree Cements
Rs in Crore	Sep-22	Sep-21	YOY	Jun-22	QOQ
Total Income (Rs cr)	₹ 4,038	₹ 3,373	19.70%	₹ 4,415	-8.54%
Net Profit (Rs cr)	₹ 183	₹ 563	-67.42%	₹ 280	-34.40%
Diluted EPS (Rs)	₹ 50.81	₹ 155.99		₹ 77.47
Net Margins	4.54%	16.68%		6.33%