Shree Cement's net profit fell 20% in the fourth quarter
Cement

Shree Cement's net profit fell 20% in the fourth quarter

Shree Cement Ltd recorded a consolidated net profit of Rs 5.25 billion in the March quarter, a 20% decrease from the previous year's figure of around Rs 6.57 billion.

However, the company's performance increased substantially sequentially, with net profit increasing 86.4% over the previous quarter's Rs 2.82 billion.

Although greater expenses continue to negatively impact its cement business year over year, cement pricing have not kept pace with rising costs. However, a strong increase in sales volume, falling raw material costs, and improved operating efficiencies helped fuel its profitability rise.

The company sold 8.83 million tonnes (mt) of cement in total during the quarter, a 10% increase over the 8.03 mt it sold during the third quarter and the prior quarter.

This improved the success of the company's cement division, which is better reflected in its standalone results. At Rs 47.85 billion, the standalone operating sales increased 17% annually and 18% sequentially. The company's standalone operating Ebitda, at Rs 8.92 billion, increased 26% sequentially but was still down 2% year over year despite a sequential reduction in costs. Earnings before interest, taxes, depreciation, and amortization is known as EBITDA.

According to analyst projections, the cement industry's Ebitda per tonne was $1,011, down 123 from the prior quarter but up 129 from one after the other.

Despite a 15% year-over-year decline, Shree Cement's standalone net profit of Rs 5.46 billion, which above Bloomberg projections, nearly doubled from Rs 2.77 billion in the previous quarter.

The firm has been making efforts to surpass its 80 million tonnes capacity target. By the end of Q1 FY24, the commissioning of the Purulia grinding plant with a 3 MTPA capacity is planned. The 3.5 MTPA Nawalgarh project is proceeding according to plan, and the business anticipates completion by the end of Q3 of FY24. Additionally, it is making good progress on a project that will be completed in the Andhra Pradesh district of Guntur early in the following fiscal year.

“We continue to execute sharp action plans to reach beyond 80 million tonnes cement capacity in the coming years. Our growth plan will add significant value to our business and provide opportunities for all our stakeholders," said Neeraj Akhoury, managing director, Shree Cement Ltd.

In comparison to the same quarter last year, the percentage of green power consumption in overall power consumption for the quarter was 54.6%. As of the end of FY23, the company has finished commissioning 122 MW worth of solar and wind generating facilities spread across several states, bringing its total capacity for green electricity generation to 385.5 MW. In FY24 and FY25, 93 MW further of green electricity capacity should be finished together with the commissioning of new project locations. By doing this, the corporation hopes to raise the proportion of green power consumption in overall power consumption to approximately 55% in FY24 and FY25.

“We are driving prioritized initiatives to increase green power, usage of alternative fuels, process automations combined with advanced digitalization of the operations to deliver superior performance," said Akhoury. The improved performance during the quarter is testimony to such initiatives amidst the challenge of managing high fuel costs, he added.

Consolidated sales (including contributions from the power business) increased 18.63% sequentially and 16.7% year on year to Rs 5,100 crore. Ebitda was around Rs 8.89 billion, up from Rs 6.56 billion in the previous quarter but lower than Rs 9.18 billion in the previous year.

See also:
Shree Cement in talks for stake in Sanghi Cement
Shree Cement to start work on a new unit in Karnataka


Shree Cement Ltd recorded a consolidated net profit of Rs 5.25 billion in the March quarter, a 20% decrease from the previous year's figure of around Rs 6.57 billion. However, the company's performance increased substantially sequentially, with net profit increasing 86.4% over the previous quarter's Rs 2.82 billion. Although greater expenses continue to negatively impact its cement business year over year, cement pricing have not kept pace with rising costs. However, a strong increase in sales volume, falling raw material costs, and improved operating efficiencies helped fuel its profitability rise. The company sold 8.83 million tonnes (mt) of cement in total during the quarter, a 10% increase over the 8.03 mt it sold during the third quarter and the prior quarter. This improved the success of the company's cement division, which is better reflected in its standalone results. At Rs 47.85 billion, the standalone operating sales increased 17% annually and 18% sequentially. The company's standalone operating Ebitda, at Rs 8.92 billion, increased 26% sequentially but was still down 2% year over year despite a sequential reduction in costs. Earnings before interest, taxes, depreciation, and amortization is known as EBITDA. According to analyst projections, the cement industry's Ebitda per tonne was $1,011, down 123 from the prior quarter but up 129 from one after the other. Despite a 15% year-over-year decline, Shree Cement's standalone net profit of Rs 5.46 billion, which above Bloomberg projections, nearly doubled from Rs 2.77 billion in the previous quarter. The firm has been making efforts to surpass its 80 million tonnes capacity target. By the end of Q1 FY24, the commissioning of the Purulia grinding plant with a 3 MTPA capacity is planned. The 3.5 MTPA Nawalgarh project is proceeding according to plan, and the business anticipates completion by the end of Q3 of FY24. Additionally, it is making good progress on a project that will be completed in the Andhra Pradesh district of Guntur early in the following fiscal year. “We continue to execute sharp action plans to reach beyond 80 million tonnes cement capacity in the coming years. Our growth plan will add significant value to our business and provide opportunities for all our stakeholders, said Neeraj Akhoury, managing director, Shree Cement Ltd. In comparison to the same quarter last year, the percentage of green power consumption in overall power consumption for the quarter was 54.6%. As of the end of FY23, the company has finished commissioning 122 MW worth of solar and wind generating facilities spread across several states, bringing its total capacity for green electricity generation to 385.5 MW. In FY24 and FY25, 93 MW further of green electricity capacity should be finished together with the commissioning of new project locations. By doing this, the corporation hopes to raise the proportion of green power consumption in overall power consumption to approximately 55% in FY24 and FY25. “We are driving prioritized initiatives to increase green power, usage of alternative fuels, process automations combined with advanced digitalization of the operations to deliver superior performance, said Akhoury. The improved performance during the quarter is testimony to such initiatives amidst the challenge of managing high fuel costs, he added. Consolidated sales (including contributions from the power business) increased 18.63% sequentially and 16.7% year on year to Rs 5,100 crore. Ebitda was around Rs 8.89 billion, up from Rs 6.56 billion in the previous quarter but lower than Rs 9.18 billion in the previous year. See also: Shree Cement in talks for stake in Sanghi CementShree Cement to start work on a new unit in Karnataka

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