Shree Cement's Q2 net profit soars to Rs 491 crore, up 159%

8 Nov 2023 , 11:26 AM

On November 7, Shree Cement announced that due to falling raw material costs, its net profit for the quarter that ended on September 30, 2023, increased by 159% year over year to Rs 491 crore from Rs 190 crore the previous year. Profit decreased by 15% sequentially.

According to a press statement from Shree Cement, the company’s operating revenue of Rs 4,585 crore represented a 21% increase from Rs 3,781 crore in the previous year. Revenue decreased by 8% when compared sequentially.

The cement manufacturer reported a 10% YoY rise in overall sales volume, from 7.46 million tonnes to 8.20 million tonnes. YoY improvements in capacity utilization were seen, rising from 65% to 71%. EBIDTA increased from Rs 523 crore to Rs 870 crore, a 66% YoY increase.

On a year-over-year basis, the sale of premium products increased to 9.5% compared to 7.5% of total trade sales.

At the company’s current facilities in the Baloda Bazar district of Chhattisgarh, the Board of Directors has approved the establishment of a brownfield cement grinding capacity of 3.40 million tonnes per year, with an estimated capital investment of Rs 550 crore.

It is anticipated that this project will be finished by September 2025. According to Shree Cement, the company’s previously stated capacity expansion initiative is proceeding according to plan.

Neeraj Akhoury, managing director of Shree Cement, stated, ‘We are aggressively marching ahead on our expansion plans to achieve our target of going beyond 80 million tons capacity by 2028 as the country enters into a multi-year strong demand cycle.’

The Board also approved the combination of the Company’s wholly owned subsidiaries, Shree Cement East Pvt. Ltd. and Shree Cement North Pvt. Ltd., into Shree Cement Ltd.

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