Shree Cement Q2 Results: Profit Down Over 80%, Misses Estimates
Shree Cement's Q2 FY25 performance was impacted by a challenging cement pricing environment and a prolonged monsoon across India, leading to an 82.8% drop in net profit to Rs 76.6 crore.
Shree Cement Ltd.'s consolidated net profit fell 82.8% in the second quarter of fiscal 2025, missing analysts' estimates.
The company's profit fell to Rs 76.6 crore in the quarter-ended Sept 30, 2024, according to an exchange filing on Monday. Analysts tracked by Bloomberg had set a consensus estimate of Rs 273.9 crore.
The company's earnings were mainly impacted by a weak cement pricing environment pan- India as well as a prolonged monsoon that impacted demand. Total sale volumes of Shree Cements fell 7% year on year during the quarter.
Shree Cement Q2 FY25 Highlights (Consolidated, YoY)
Revenue down 15.1% at Rs 4,054 crore versus Rs 4,774 crore (Bloomberg estimate: Rs 5,079.2 crore).
Ebitda down 30.8% at Rs 613 crore versus Rs 886 crore (Bloomberg estimate: Rs 733.7 crore).
Margin at 15.1% versus 18.6% (Bloomberg estimate: 14.4%).
Net Profit down 82.8% at Rs 76.6 crore versus Rs 447 crore (Bloomberg estimate: Rs 273.9 crore).
Key Operational Highlights
Total sale volumes down by 7% to 7.6 million tonnes from 8.2 million tonnes
Power & fuel cost optimized by 27% from Rs 1,371 crore to Rs 1,001 crore due to softer fuel prices
Ebitda per tonne down to Rs 4122 from Rs 4,503
Sale of premium products stood at 15% of total trade sale volume
Capex Outlay
Shree Cement's ongoing expansion projects in Rajasthan, Karnataka, Chhattisgarh, Uttar Pradesh which total a capacity of 15.4 million tonnes per annum are progressing satisfactorily.
The company expects to commission these projects by Q1FY26. It aims to identify suitable opportunities to achieve its goal of achieving over 80 million tonnes per annum capacity by 2028.
