- 07 Aug 2024
- ICICI Securities
LOWER REALISATION IMPACTED OPERATIONAL PERFORMANCE
SHREECEM - 31495 Change: 85.00 (0.27 %)News: Standalone revenue decreased by 3.3% YoY (-5.2% QoQ) to Rs 4834 crores, led by decline in sales realisation by 10.5% YoY (-6.3% QoQ), though sales volume increased by 8.1% YoY (+1.2% QoQ) to 9.6 million tonnes. EBITDA decreased by 1.7% YoY (-31% QoQ) to Rs 916 crores. EBITDA/ton decreased by 9.1% YoY (-31.7% QoQ) to Rs 951/ton, driven by lower realization, despite lower cost per tonne on YoY basis. Net profit de-grew by 45.3% YoY (-52% QoQ) to Rs 317.7 crores, primarily due to higher depreciation.
Views: Overall performance was below expectation on account of lower realisation. Going ahead, we believe volumes to be healthy, led by an expansion plan (15.4 million tonne capacity under execution to reach 75 million tonnes by FY26 from 59.8 million tonne at present). Moreover, a strong focus on cost saving measures (increase in the share of green power) is likely to improve the operational performance of the company.
Impact: Negative