Shree Cement Q2 Results: Profit Doubles, Beats Estimates

Total sales volume increased 9.9% to 8.2 million tonne from 7.46 MT in the year-ago period, with a capacity utilisation of 71% as compared with 65%.

Sales of premium products rose to 9.5%, as compared with 7.5% in the corresponding quarter of the previous fiscal. Share of green power, in total power consumption, increased to 58.6% as against 50.8%.

Shree Cement’s board has approved setting up of brownfield cement grinding capacity of 3.4 MT per annum at existing facilities in Baloda Bazar district of Chhattisgarh, with an estimated capital expenditure of Rs 550 crore. This project is estimated to be completed by September 2025.

The company had announced a Rs 7,000-crore capex plan in the previous quarter to add 7.3 MT of clinker capacity and 12 MT of cement capacity, to be funded by a combination of internal accruals and debt. 

The capacity additions are expected to be completed by the end of fiscal 2025 and it will take the group's cement capacity to 72.4 MT. The current cement capacity stood at 50.4 MT in India, with a capacity utilisation rate of 71%.

Shree Cement East Pvt., a wholly owned subsidiary, commenced production at its clinker grinding unit in Digha and Parbatpur in West Bengal, with a cement capacity of 3 MT on July 28.

"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 tonnes capacity by 2028," Managing Director Neeraj Akhoury said.

Shares of Shree Cement closed 1.11% higher at Rs 26,692.15 apiece on the BSE before the results were announced as compared with a 0.03% decline in the benchmark Sensex.