Shree Cement Q1 consolidated net profit down 51% on-year to Rs 279 cr

The company counts south, east, and the north as its key markets.

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26 Aug, 2025 12:21

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Shree Cement Ltd reported a consolidated net profit of Rs 278.61 crore for the quarter ending June 30, plummeting by 51.3 percent year-on-year. Consolidated net sales for the quarter stood at Rs 5,124 crore, up by 1.8 percent over the same quarter last year, Shree Cement said in an exchange filing.

Shree Cement's results follow those of other cement makers which reported sluggish volume and topline growth during the April-June quarter, with most of the quarter coinciding with the general elections, reducing infrastructure orders from the government. Extreme heat in many parts of India was also a drag, which caused a decline in availability of labour, affecting real estate and other allied sectors.

The consolidated operating margin for the quarter was 21 percent, lower than the 22 percent reported in the year-ago period, as well as the 29 percent reported in the quarter ending March 31.

While sales volumes for the quarter improved by 8 percent on year to 9.6 million tonne, weak pricing during the quarter for most of the country, particularly in the south and the east, affected key operational metrics. The earnings before interest, taxes, depreciation, and amortisation, or EBITDA, on a standalone basis was Rs 916 crore, 2 percent lower than that of the year-ago period.

Power and fuel expenses were on a declining trend in the April-June period. The company's management acknowledged the impact on demand in Q1 due to the elections and other factors.

"We continued to optimize our production processes, enhance cost efficiencies and maintain a strong focus on branding initiatives. These efforts enabled us to navigate the challenging market conditions marked by sluggish demand due to general elections and extreme weather, consistently delivering value to our stakeholders," said Neeraj Akhoury, managing director of Shree Cement.

On August 6, Shree Cement's shares closed 2.7 percent lower on the National Stock Exchange at Rs 26,100.