Shree Cement witnesses high input cost at Rs 910 cr in Q4 FY22

26 May 2022 CW Team

Shree Cement Limited told the media that it had hit higher-than-expected input costs, with standalone Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) at Rs 910.6 crore in the fourth quarter (Q4) of FY22, lower than the consensus estimate of Rs 1,010.7 crore.

According to the analysts, the muted cement prices in its key market of East India Limited can pass on the burden of increased costs with a decline in operating margin. At 22.2%, its standalone operating margins fell to a three-year low in Q4 FY22.

Shree Cement has been enjoying premium valuations as it can control costs better than competitors. Kotak Institutional Equities said that Shree Cement’s EBITDA per tonne premium over Ultratech Cement Limited has been declining for the past three years and has now merged.

In Q4 FY22, cement volumes declined by 2.3% year-on-year (YoY) to 8 million tonnes (mt).

In FY22, its standalone volume growth at 3.3% was much lower than its counterparts. The company is adding more capacities in the East and North India and aims to reach 57 million tonnes per annum (mtpa) capacity in the next three years.

The pace of improvement in the existing capacity utilisation and price hikes are crucial. In FY22, its capacity utilisation stood at 60%.

The company's stocks were at Rs 21,650 on 7 March 2022 on the National Stock Exchange (NSE). Last year, its shares had given negative returns of 20.6%.

As per the FY23 EBITDA estimates of Axis Securities Limited, the Shree Cement stock is trading at a 22x valuation. For FY24, the domestic brokerage house witnesses multiple moderating to 17x.

Axis Securities told the media that Shree Cement is under pressure, and the premium valuation for its operating efficiency is now at risk.

Image Source

Also read: Shree Cement net profit declines 23.6% to Rs 482 cr in Q3 FY33

Infrastructure Transport

17 Sep 2025

DMRC revives plan for Dwarka–Gurgaon Metro corridor

Nearly a decade after it was shelved, the Delhi Metro Rail Corporation (DMRC) is reconsidering a long-discussed plan to extend the Metro from Dwarka to Gurgaon.The proposed 12-km corridor would run from Yashobhoomi station in Dwarka Sector-25, on the Airport Express Line, to IFFCO Chowk along the Delhi–Jaipur Expressway. Planned stations include Bharthal, Bijwasan, Carterpuri, and Tau Devi Lal Park in Sector 23. An interchange is expected with the Gurugram Metro corridor at Sector 23.If implemented, the extension would provide direct metro access from Dwarka to key commercial hubs including ..

Ola, Uber, Rapido get nod for Mumbai bike taxi services

The Maharashtra State Transport Authority (STA) has granted provisional licences to Ola, Uber, and Rapido to operate bike taxi services in the Mumbai Metropolitan Region. The move follows the implementation of the Maharashtra Bike Taxi Rules 2025.As per STA’s approval, the minimum fare has been fixed at Rs 15 for the first 1.5 km, with an additional Rs 10.27 per km thereafter. The licences are valid for one month, during which operators must apply for permanent permits by fulfilling all regulatory conditions.Smart-Ride’s application was rejected for failing to meet the prescribed norms. Of..

Adani wins Kedarnath ropeway project to cut trek to 36 minutes

Adani Enterprises Ltd (AEL) has secured the contract to build a 12.9-km ropeway connecting Sonprayag with Kedarnath, a project expected to transform the pilgrimage experience. Awarded by National Highways Logistics Management Ltd (NHLML), the project will be executed under the National Ropeways Development Programme – Parvatmala Pariyojana.Currently, pilgrims undertake a gruelling nine-hour trek to Kedarnath. The ropeway will reduce this journey to just 36 minutes and can transport 1,800 passengers per hour in each direction, serving the nearly 20 lakh devotees who visit annually.The Rs 25,0..