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

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.