Shree Cement shares in focus on Q3 sequential recovery; brokerages remain upbeat
Shree Cement shares will be in focus on Friday, January 31, after the company reported a 69% year-on-year decline in net profit to Rs 229 crore for the December quarter, impacted by lower revenue from operations. While power and fuel costs fell over 27% YoY, weak cement prices offset the gains.
The company, India’s third-largest cement producer, sold 8.77 million tonnes during the quarter, slightly lower than 8.89 million tonnes a year ago. Net revenue from operations dropped 13% to Rs 4,235 crore, while EBITDA declined 23% to Rs 947 crore from Rs 1,234 crore in the same period last year.
On a sequential basis, the company’s profit jumped 146%, while net revenue was 14% higher. EBITDA for the quarter rose 60% sequentially. The September quarter is seasonally weak for cement-makers due to monsoon rains impacting construction activities.
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“We expect cement demand to grow on the back of likely increased rural consumption aided by improved farm cash flows, sustained healthy demand for urban housing, and expected increases in government spending on infrastructure projects,” Shree Cement said in a statement.
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