Earnings Review
Shree Cement PAT surges on low input costs, tops estimate
This story was originally published at 16:01 IST on 4 August 2025
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--Shree Cement Apr-Jun net profit INR 6.19 bln
--Analysts saw Shree Cement Apr-Jun net profit at INR 5.46 bln
--Shree Cement Apr-Jun net profit INR 6.19 bln vs INR 3.18 bln year ago
--Shree Cement Apr-Jun revenue INR 49.48 bln vs INR 48.35 bln year ago
--Shree Cement Apr-Jun operating margin 29% vs 22% year ago
--Shree Cement Apr-Jun total expenses INR 43.16 bln vs INR 46.18 bln yr ago
--Shree Cement Apr-Jun EBITDA INR 14.30 bln vs INR 10.51 bln year ago
--Shree Cement Apr-Jun total sales volume 8.95 mln tn
--Shree Cement Apr-Jun premium pdt sales 17.7% of trade sales volume
--Shree Cement: Added 6 ready-mix concrete plants this year, total at 21
--Shree Cement: Aim to increase ready-mix concrete plants to 50 by FY26-end
--Shree Cement Apr-Jun total sales volume down 7.2% on year
By Ashutosh Pati
MUMBAI – A drop in input costs and favourable demand conditions boosted Shree Cement Ltd.'s net profit for the June quarter. The company's revenue also rose on year, albeit at a slower pace than the bottom line. The company's bottom line beat Street estimates but its revenue from operations missed analysts' expectations.
Shree Cement's net profit surged nearly 95% on year to INR 6.19 billion in the quarter ended June, significantly higher than analysts' expectation of INR 5.46 billion. The revenue from operations rose more than 2% on year to INR 49.48 billion in the June quarter, while analysts had expected the company to have earned revenue of INR 51.87 billion. Sequentially, the company's bottom line rose over 11% in the reporting quarter but its revenue from operations declined around 6%.
The company's total expenditure in the June quarter fell around 7% on year to INR 43.16 billion, owing to a decline in cost of materials consumed, finance costs, depreciation and amortisation expenses, power and fuel costs, and freight and forwarding expenses. Shree Cement's cost of materials consumed during the reporting quarter fell over 12% on year to INR 4.19 billion and its finance costs declined over 22% on year to INR 446 million. The company's power and fuel expenses fell more than 18% on year to INR 11.46 billion in the June quarter and freight and forwarding expenses declined nearly 3% to INR 10.84 billion.
The company's depreciation and amortisation expenses fell 14% on year to INR 5.52 billion. Power and fuel expenses accounted for over 26% of the company's total expenses in the quarter and freight and forwarding expenses accounted for 25%. Shree Cement's operating margin fell to 29% in the June quarter from 22% in the year-ago period. Its earnings before interest, tax, depreciation and amortisation for the quarter was INR 14.30 billion, up 36% on year. The improved profitability was driven by continued focus on pricing, premium products, operational efficiencies, and disciplined cost management, Managing Director Neeraj Akhoury said in a press release.
Shree Cement's total sales volume fell over 7% on year to 8.95 million tonnes in the June quarter. The company's sales of premium products rose to 17.7% of trade sales volume in the reporting quarter from 15.6% in the year-ago period. The company has added six ready-mix concrete plants, taking the total to 21. It aims to take the tally to 50 plants by the end of FY26.
Shree Cement expects the domestic cement industry to grow 6-7% in FY26, driven by robust government capital expenditure, rising rural housing demand supported by a healthy monsoon, increasing urbanisation, and accelerating industrial and infrastructure activity. Shares of Shree Cement closed at INR 30,645 on the National Stock Exchange on Monday, down 0.1%. The company detailed its results during market hours. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
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