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Shree Cement Profit Surges Amid Stable Demand
6 Feb
Summary
- Net profit rose 37.9% year-on-year to ₹266.7 crore in Q3.
- Revenue grew 5% YoY to ₹4,800 crore, driven by stable volumes.
- Company aims for 80 million tonnes capacity by 2029.
Shree Cement announced a substantial 37.9% year-on-year surge in net profit for the third quarter, reporting ₹266.7 crore compared to ₹193.4 crore in the prior year. The company's revenue saw a 5% increase, reaching ₹4,800 crore, primarily due to stable sales volumes and improving market demand.
Despite this robust profit growth, the company's operational performance showed mixed results. EBITDA experienced a slight decline of 1.9% year-on-year, and profit margins narrowed to 19.7% from 21.1% in the same period last year. This moderation was attributed to increased employee benefit costs, linked to the implementation of new labour codes.
Looking ahead, Shree Cement remains focused on its strategic objectives. The company reaffirmed its full-year sales guidance of over 36 million tonnes. Furthermore, it reiterated its long-term ambition to expand its capacity significantly, targeting 80 million tonnes by the year 2029, with a continued emphasis on organic expansion rather than acquisitions.
