Shree Cement’s Q4FY22 performance remains below estimates

News: Shree cements reported moderate revenue growth of 3.6% YoY to Rs.4099 crore due to lower than expected realisations. EBITDA margin declines further by 103bps QoQ to 22.2%. However, lower taxation adds to profitability leading QoQ growth of 31% to Rs.645 crore (down 16% YoY)

Views: We believe, the ongoing cost related challenges is going to put further pressure on the margins in the medium term due to limit on the cement price increase in tandem with the rise in the input cost.

Impact: Negative