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Informist, Thursday, Jan. 30, 2025

By Akshita Kumar

MUMBAI – A double-digit fall in revenue coupled with a 116% rise in depreciation and amortisation expenses dragged down Shree Cement's net profit for the December quarter. The company's net profit and revenue have been declining for the past three quarters. For the December quarter, the cement company failed to meet analysts' expectations on both net profit and revenue fronts.

The cement company reported a bottom line of INR 2.29 billion, down 69% on year and lower than the estimated INR 2.54 billion. Sequentially, however, the net profit was up 146%. The company's revenue for the December quarter was INR 42.35 billion, down 13% on year and lower than the expected INR 45.88 billion. Sequentially, the revenue was up 14%.

The company's board declared an interim dividend of INR 50 per share. The company has fixed Wednesday as the record date and the dividend will be paid from Feb. 17. For the nine months ended Dec. 31, the company's bottom line was INR 6.40 billion, down 65% on year. Its top line for Apr-Dec was INR 127.97 billion, down 11% on year. 

The company's total expenses for the December quarter were INR 40.91 billion, up 1% on year and up 6% on quarter. Its other expenses were INR 6.06 billion, down 6% on year. Depreciation and amortisation expenses for the reporting quarter more than doubled on year to INR 7.50 billion. The company's total income for the December quarter was INR 43.5 billion, down 13% on year. Other income was INR 1.15 billion, down 15% on year. Its power and fuel costs were INR 9.13 billion, down nearly 28% on year and freight and forwarding expenses were INR 9.92 billion, up 2% on year.  

The company's total sales volume for the December quarter was 8.77 million tonnes, up 15% on quarter. Its earnings before interest, tax, depreciation and amortisation for the quarter was INR 9.47 billion, down 23% on year. Its EBITDA rose 60% sequentially on strong performance on cost and price levers, the company said.

The company said its total expenditure, excluding depreciation and interest, fell to INR 3,738 per tonne of cement from INR 4,122 per tonne a quarter ago due to cost optimisation and efficiency measures. Sales of premium products for the quarter were 15% of the trade sales volume, up 10 basis points sequentially. The company remains committed to increasing the volume of premium products and focusing on further cost optimisation, Neeraj Akhoury, managing director of Shree Cement said in the press release.

The company's ongoing expansion projects in Rajasthan, Karnataka, Chhattisgarh, and Uttar Pradesh will be completed soon. It expects to commission all these projects in 2025-26 (Apr-Jun), the company said. The company is continuously working to identify suitable opportunities to achieve its goal of reaching a capacity of over 80 million tonnes per annum by 2028.

Shree Cement expects the demand for cement to grow on the back of a likely increase in rural consumption, aided by improved farm cash flows. Cement demand is also expected to improve due to sustained healthy demand for urban housing and an expected increase in government spending on infrastructure projects, the company said.

The company declared its financial results for the December quarter after market hours. Thursday, shares of the company closed at INR 26,830.50 on the National Stock Exchange, up 0.7%.  End

Edited by Deepshikha Bhardwaj

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