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- 15 May 2025
- ICICIdirect Research
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SHREE CEMENT REVENUE INCREASED TO RS 5240 CRORE
SHREECEM - 28875 Change: -435.00 (-1.48 %)News: Revenue increased by 2.7% YoY to Rs 5240.2 crore, mainly led by cement sales volume growth of 3.3% YoY (to 9.84 mtpa). Sequentially, revenue was up 23.7%, led by 12.2% volume growth with realisation improvement of 4.5% QoQ. Realisation improved in this quarter led by increase in sale of premium products and improvement in prices in its key market areas in North India. Total cost/ton declined by 1% YoY (+4.6% QoQ). Blended EBITDA/ton stood at Rs 1404/ton (+0.8% YoY, +30.1% QoQ). Subsequently, absolute EBITDA was up 4.1% YoY (+45.9% QoQ) to Rs 1381.3 crores. PAT decreased by 16% YoY (+142% QoQ) to Rs 556 crore. For FY25, revenue is down by 7.8% YoY, due to lower realization (-8.6% YoY) and marginal growth in volume of 0.9% YoY. EBITDA/ton stands at Rs 1070/ton (vs Rs 1228/ton in FY24).
View: Operating performance improved substantially QoQ during the quarter led by strong growth in volumes and improvement in realisation. We believe that going ahead, company's profitability to improve further lead by pickup in demand, improvement in prices and further reduction in costs. Volume growth visibility for medium to long term remains strong as the company has ongoing expansion of 6 mtpa (3 mtpa in Rajasthan and 3 mtpa in Karnataka) which will be commissioned in FY26E. This expansions will help company to reach ~68.8 mtpa of capacity by end of FY26 from current capacity of 62.8 mtpa. Company targets 80+ mtpa by FY28E.
Impact: Positive