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- 01 Feb 2024
- ICICI Securities
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SHREE CEMENT'S STRONG OPERATIONAL PERFORMANCE
SHREECEM - 31210 Change: 35.00 (0.11 %)News: Revenue increased by 20.4% YoY (+6.9% QoQ) to Rs 4900.8 crore, led by 10.7% YoY (+8.7% QOQ) growth in cement sales volumes to 8.89 million tonnes (mtpa) and 8.8% YoY (-1.4% QoQ) growth in net realization. EBITDA increased significantly by 74.3% YoY (+41.8% QoQ) to Rs 1233.7 crore on account of improvement in margins, primarily led by lower power & fuel cost. Blended EBITDA/ton came at Rs 1388/ton (+57.4% YoY, +30.8% QoQ). PAT increased by 165.3% YoY (+49.4% QoQ) to Rs 734.2 crore. For 9MFY24, revenue is up 20.2% YoY with blended EBITDA/ton at Rs 1167/ton (vs 890/ton in 9MFY23).
Views: Operational performance during the quarter remained strong with better than industry volume growth and significant improvement in margins. EBITDA/ton improvement was largely led by increase in premium product sales, lower fuel cost, increase in green power share and reduction in lead distance. With the recent commissioning of new 3.5 mtpa cement capacity (with 3.8 mtpa clinker) at Nawalgarh and another 3 mtpa in process (to be commissioned by Mar-2024), the company’s total cement capacity will increase to 56 mtpa by FY24 end. Company aims to reach 62 mtpa by FY25 and 80 mtpa cement capacity by FY28. We believe that company will able to grow better than industry in the coming years also led by capacity expansions and better market mix.
Impact: Positive