Shree Cement Ltd's Q3FY19 standalone net profit declines 9.6% yoy to Rs301.3cr : Beats Estimates

The company’s standalone revenue stood at Rs2,780.63cr, up 20.8% yoy and 7.5% qoq.

Jan 22, 2019 02:01 IST India Infoline Research Team

Shree Cement Ltd Q3FY19

Standalone Results Q3FY19: (Rs. in cr)

Q3FY19 YoY (%)
Revenue 2,780.6 20.8
EBITDA 710.1 24.7
EBITDA Margin (%) 25.5 80
Net Profit  301.3 [9.6]
***EBITDA margin change is bps
Shree Cement reported mixed set of numbers for the quarter; though revenue was marginally lower than estimate, profit beat the estimate significantly. Company reported revenue growth of 20.8% yoy to Rs2,780.6cr, ~2% lower than consensus estimates. Though the power cost was up 175bps yoy (as percent of sales), it was offset by lower freight cost on account of softening in crude prices and axle norms (down 241bps yoy). Thus, EBITDA for the quarter was up 24.7% yoy to Rs710.1cr, ~4% above estimates. EBITDA margin expanded marginally by 80bps yoy to 25.5% (estimate 24.0%). However, higher interest and depreciation cost coupled with lower other income led to PAT decline of 9.6% yoy to Rs301.3cr, beating the estimate by 14%.
  • Cement segment reported 16.3% yoy growth in revenue to Rs2,559.4cr, however, EBIT declined by 23.4% yoy due to higher cost structure.
  • Reported net revenue for power (net of intersegment) jumped by 115.7% to Rs221.3cr with an EBIT of Rs202.5cr, up 39.3% yoy.
  • Interest cost jumped by 185.9% yoy to Rs59.3cr and depreciation was up by 60% yoy to Rs336.1cr.
  • Other income for the quarter also declined by 36.6% yoy.
  • Company has commissioned the clinker section of 3MTPA of the integrated cement plant at Kodla, Kamataka on December 25, 2018. The cement mill was already completed on June 28, 2018 and is now fully commissioned.
  • Company has declared an Interim dividend of Rs25 per equity share for the FY19.




Technical View:

Shree Cement Ltd is currently trading at Rs. 15,643.10, down by 41.25 points or 0.26% from its previous closing of Rs. 15,684.35 on the BSE.
The scrip opened at Rs. 15,676.70 and has touched a high and low of Rs. 16,200.10 and Rs. 15,210 respectively. So far 71,121 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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