Shree Cement on November 7 said its net profit for the quarter ended September 30, 2023, shot up 159 percent year on year amid declining raw material prices to Rs 491 crore from Rs 190 crore, a year ago. Sequentially, profit was lower by 15 percent.
The company’s revenue from operations came in at Rs 4,585 crore, registering a growth of 21 percent from Rs 3,781 crore a year ago, Shree Cement said in a press release. Sequentially, revenue was down 8 percent.
The cement maker said its total sale volume increased 10 percent YoY from 7.46 million tonnes to 8.20 million tonnes. Capacity utilisation improved from 65 percent to 71 percent on YoY basis. EBIDTA was up 66 percent YoY from Rs 523 crore to Rs 870 crore.
Sale of premium products rose to 9.5 percent vis-à-vis 7.5 percent of total trade sales on YoY basis.
The Board of Directors also approved setting up of brownfield cement grinding capacity of 3.40 million tonnes per annum capacity at Company’s existing facilities at Baloda Bazar district of Chhattisgarh with estimated capital expenditure of Rs 550 crore.
This project is estimated to be completed by September 2025. The work on capacity expansion program already announced by the company is running as per schedule, Shree Cement said.
“As the country enters into a multi-year strong demand cycle, we are aggressively marching ahead on our expansion plans to achieve our target of going beyond 80 million tons capacity by 2028,” said Neeraj Akhoury, Managing Director, Shree Cement.
The Board approved merger of Shree Cement East Pvt. Ltd. and Shree Cement North Pvt. Ltd., wholly owned subsidiaries of the Company into Shree Cement Ltd. as well.
“Cement demand in India is expected to remain robust in the mid-term on account of rising expenditure on infrastructure and housing development,” said the company in its industry outlook.
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