Shree Cement shares rise 4% despite margin dip, expects strong growth ahead

Shree Cement shares gained nearly four percent on May 23 even as the company posted a year-on-year dip in its margin and profit in the January to March 2023 quarter. Its profit at Rs 546.2 crore was 15 percent higher than CNBC-TV18 poll estimates.

Brokerage firms highlighted the 10 percent year-on-year growth in cement volumes driven by industry wide demand pickup. India’s third largest cement player, however, is confident of growing 13-14 percent this year, largely ahead of the market.

“As far as volumes are concerned, we are very clear that we have to grow to a rate of capacity utilisation which is at par with the industry average. This year, we are also expecting some capacity additions in the East as well as North. Given that ideally, we should be growing in the range of 12 to 13 percent where our market growth outlook is about 7 to 8 percent, slightly ahead of the market, but largely because of new capacity additions that will come,” Neeraj Akhoury, Managing Director, Shree Cement told CNBC-TV18.