Shree Cement shares tumble 4% post-Q2 miss

12 Nov 2024 , 12:01 PM

After Shree Cement’s Q2 profit fell more than 80% year-over-year to Rs 93.13 crore, the Kolkata-based company’s shares fell 4% on Tuesday to an intraday low of Rs 23,500.15 on the BSE.

Weaknesses in the building material’s prices and demand over the three months hurt the profit.

Although the September quarter is typically slow for cement producers, the third-largest manufacturer in the nation had a 7% decline in sales volume from the previous year, coming in at 7.60 million tonnes.

While earnings before interest, tax, depreciation, and amortisation plummeted 32% year over year to Rs 593 crore, the company’s net revenue from operations decreased 18% to Rs 3,727 crore.

Over the next three quarters, the fuel price is anticipated to progressively decline by 12% from Q2FY25 levels. The business anticipates spending Rs 4,000 crore annually for the following four years. In order to reach 70 million MT, management intends to commission 14 million MT of cement capacity in Q1FY26.

Due to an increase in trade sakes QoQ, cement NSR decreased by just 0.4% QoQ, which was less than peers. Due mostly to op-lev loss, unit opex increased 2% QoQ. As a result, unit EBITDA decreased INR 280/MT YoY to INR 780/MT QoQ.

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