Shree Cements Q3 net down -23.6% yoy at Rs481.97cr on 40% spike in power and fuel costs

4 Feb 2022 , 10:47 PM

Shree Cements Ltd reported 2.25% yoy growth in total sales revenues for the Dec-21 quarter on consolidated basis at Rs3,637.11cr. On a sequential basis, the revenues were up by 7.82%.

During the December 2021 quarter, Shree Cements saw sales growth slowdown due to the Omicron related restrictions on the construction sector, especially in select areas in North India.

The company ahs commenced commercial production at its clinker grinding unit at Village Patas in Pune district. For the current fiscal, the company has declared an interim dividend of Rs.45 per share, which was approved by the Board.

For the Dec-21 quarter, the operating profits were down on yoy basis by 30.37% at Rs560cr. During the quarter, the EBIT came under pressure due to a sharp spike in operating costs, especially the cost allocation to power and coal.

For instance, the power and fuel expenses in the Dec-21 quarter was up by 39.5% at Rs914cr. Cost of materials was also 15% higher yoy while the transport and freight costs trended lower yoy. Operating margins tapered sharply from 22.61% in Dec-20 quarter to 15.39% in the Dec-21 quarter. Operating margins were also lower on a sequential basis.

Net Profit after tax (PAT) for the Dec-21 quarter was down -23.6% yoy at Rs482cr on the back of the operating pressures getting transmitted to the bottom line. The fall in net profits was lower due to lower tax burden in the current quarter.

PAT margins tapered from 17.73% in the Dec-20 quarter to 13.25% in the Dec-21 quarter. The PAT margins were lower on a sequential basis too.

Financial highlights for Dec-21 compared yoy and sequentially

	Shree Cements
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 3,637.11	₹ 3,557.21	2.25%	₹ 3,373.38	7.82%
EBITDA (Rs cr)	₹ 559.90	₹ 804.15	-30.37%	₹ 630.63	-11.22%
Net Profit (Rs cr)	₹ 481.97	₹ 630.87	-23.60%	₹ 562.83	-14.37%
Diluted EPS (Rs)	₹ 133.56	₹ 174.85		₹ 155.59
EBITDA Margin	15.39%	22.61%		18.69%
Net Margins	13.25%	17.73%		16.68%