Shree Cement Q4 Results: Profit Up 28.7%, Beats Estimates

Shree Cement Ltd.'s consolidated net profit rose 28.7% in the fourth quarter of fiscal 2024, beating analysts' estimates.

The company's profit increased to Rs 676 crore in the quarter-ended March, according to an exchange filing on Tuesday. Analysts tracked by Bloomberg had set a consensus estimate of Rs 591.7 crore.

The company's board has recommended a final dividend of Rs 55 per share for fiscal 2024.

• Revenue up 6.5% to Rs 5,433 crore versus Rs 5,100 crore (Bloomberg estimate: Rs 5,147 crore).

• Ebitda up 59.9% to Rs 1,422 crore versus Rs 889 crore (Estimate: Rs 1,212.3 crore).

• Margin at 26.2% versus 17.4% (Estimate: 23.6%).

• Net profit up 28.7% to Rs 676 crore versus Rs 525 crore (Estimate: Rs 591.7 crore).

The cement-maker's total sales volume in Q4 FY24 rose 8% year-on-year from 8.83 million tonne to 9.53 million tonne.

Annual sales volume for financial year 2024 rose 12% to 35.5 million tonne.

According to the company' press release, Shree Cement targets a 65.8 million tonne per annum capacity by March 2025 and will invest Rs 4,500 crore on expansion in FY25.

On April 2, the company commissioned its integrated cement plant in Andhra Pradesh, with a cement capacity of 3 million tonne per annum. The work on 18 million tonne capacity expansion projects already announced are also progressing as per schedule, the company said.

Upon completion, total cement production capacity of the company will reach to 74.80 million tonne per annum.

Two of Shree Cement's subsidiaries—Shree Cement East Pvt. and Shree Cement North Pvt. also approved a Scheme of Amalgamation on Tuesday. It pertains to the amalgamation of Shree Cement North with and into Shree Cement East.

The rationale for the scheme was to consolidate two entities that carry out similar business. The scheme does not involve payment of any cash consideration and will have no change in shareholding pattern of Shree Cement.