Shree Cement Ltd, one of the biggest players in the cement sector in India, has declared its results for the quarter ended September 30, 2021.
The company has reported a standalone profit after tax (PAT) of Rs 577 crore for the quarter, up 5% from Rs 547 crore reported in the corresponding period last year and down 13% from the reported net profit of Rs 662 crore in the previous quarter.
The standalone revenues came in higher by 5% at Rs 3,206 crore for the quarter, compared to Rs 3,053 crore in the same period last year and down 7% from Rs 3,450 crore in the previous quarter.
The higher input costs impacted the operating margins which are down 300 bps at 33% from last year and flat on a sequential basis.
Costs as percentage of revenue
Cost of material as percentage of revenue increased marginally by 10 bps to 6.3% on a y-o-y basis and was flat on a sequential basis.
Employee cost in this quarter stood at Rs 202.6 crore. As a percentage of revenue, it was higher by 60 bps compared to last year and higher by 20 bps compared to last quarter.
Due to the steep rise in coal and pet-coke prices, the power and fuel cost for the company increased significantly by 370 bps to 19.6% of revenues compared to 15.9% last year and by 70 basis point compared to last quarter.
Company had savings in Freight & Forwarding costs in the quarter of 120 bps compared to last year, but these were offset by the increase in other expenses which rose by 180 bps. On a q-o-q basis, the freight and forwarding costs reduced by 210 bps but other expenses witnessed an increase of 160 bps which partially negated the impact.
Margins
Though, the operating margins declined by 300 bps y-o-y to 33% in this quarter, higher other income helped maintain the net margins at last year’s level of 18%. On a q-o-q basis, there was a decline of 100 bps.
Earnings Per Share (EPS)
EPS for the company in the quarter came in at Rs 160.1/share compared to Rs 151.7/share in the same quarter last year. However, on a sequential basis, there was a decline of Rs 23.3 from Rs 183.4 in the previous quarter.
The stock closed at Rs 28,635.25 today, up Rs 442.2 (1.57%) from its previous day’s close. The stock is up 32% during the past one year, 19% during this financial year and 3% in past 3 months. However in the past 1 month, the stock is down 3%.
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