Shree Cement Ltd share Price

Shree is the third largest cement group in India with domestic cement capacity of 43.4MT as of FY21. In the past 4 years, it has diversified itself from being 100% North player to the player with capacities now in Rajasthan, Uttarakhand, Bihar, Chhattisgarh, Haryana, Uttar Pradesh, Karnataka and Odisha.

• It also has presence in UAE with integrated cement capacity of 4MT and 3.3MT clinker (located near port in Ras-Al-Khaimah).
• Proximity to end user market, use of split grinding units and power capacity of 742MW (Including 211MW WHRS) makes it most efficient player in the Industry.

The performance remained ahead of our estimates.

• Revenue were up 7.3% YoY on sustained higher realisations. Volumes were down 8.6% YoY on unseasonal rains and transporters strike in East.
• EBITDA/t of ₹1260/t were down 17.1% YoY due to sharp rise in the fuel costs. Although, it was marginally above our estimates
• PAT was down 21.4% YoY to ₹492.0 crore (vs I-direct est ₹457.5 crore.
• Domestic sales volumes were at 6.55MT (down 8.6% YoY, up 4% QoQ) while blended realisations were higher by 17.4% YoY, 16.4% QoQ to ₹5,423/tonne.
• Capacity utilisation stood at 60.4% vs 70.9% in Q3FY21.
• Cost of production were higher by 34% YoY to ₹4,162/t led by sharp rise in the power & fuel expenses (up 59% YoY, 23.5% QoQ).  
• Though, EBITDA/t were lower by 17.1% YoY to ₹1,260/t, it remained higher than our estimated EBITDA/t of ₹1,202/t.
• The Board reappointed Mr. Prashant Bangur as Joint MD of the company for a further five years. It has also announced an interim dividend of ₹45/share.

Q4FY23 Quarterly Result Announced for Shree Cements Ltd.

Shree Cements announced Q4FY23 results:

• Net revenue up QoQ by 18% from Rs 4,069 crore to Rs 4,785 crore
• Total sale volume increased QoQ by 10% from 8.03 million tonnes to 8.83 million tonnes
• EBIDTA (without Other Income) went up QoQ by 26% from Rs 708 crore to Rs 892 crore
• Proportion of premium products sales against total trade cement sales was 7.5% in Q4FY23 vs 7.2% in Q3FY23
• The Board of Directors of the company has declared a second interim dividend of Rs 55 per share (550%) for FY23

Neeraj Akhoury, Managing Director, Shree Cement, said, “Shree Cement has delivered a robust set of revenue & EBITDA growth while strongly pursuing our journey to remain the greenest cement company with world-class performance indicators. We are driving prioritized initiatives to increase green power, usage of alternative fuels, and process automation combined with advanced digitalization of the operations to deliver superior performance. The improved performance during this quarter is testimony to such initiatives amidst the challenge of managing high fuel costs. Our resolve to step up actions on strengthening brand equity is under execution and we are confident to deliver volume growth with focus on premium cement creating enhanced value for our customers.”

He added that “We continue to execute sharp action plans to reach beyond 80 million tons cement capacity in the coming years. Our growth plan will add significant value to our business and provide opportunities for all our stakeholders.”

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