Invest
Shree Cement reported healthy EBITDA growth of 28.2% YoY to | 1089 crore driven by improved sales volume (up 14.6% YoY to 7.16 MT) and lower production costs. This, along with fall in the depreciation charge led to PAT growth of over 102% for the quarter. The company aims to double its total capacity over the next seven years. Current total cement capacity is at 44.4MT (including UAE), which will increase to 50 MT by end of FY21 with commissioning of 6 MT cement capacity at Odisha and Maharashtra. The company also recently announced 3.5-4 MT clinker capacity expansion entailing capex of ~| 1000 crore at Raipur. It is likely to get commissioned by September 2022E. With expected sharp pick-up in infra and real estate, we expect the growth momentum to remain strong and expect revenue CAGR and PAT CAGR of 12.8% and 19.9%, respectively, during FY20-23E.
