Leading cement company Shree Cement Ltd on Tuesday, November 7, reported a 158.95% year-on-year (YoY) jump in standalone net profit at ₹491.3 crore for the second quarter that ended September 30, 2023.
In the corresponding quarter last year, Shree Cement posted a net profit of ₹190 crore, the company said in a regulatory filing. The CNBC-TV18 poll had predicted a profit of ₹453 crore for the quarter under review.
The company's standalone revenue from operations increased 21.3% to ₹4,584.6 crore against ₹3,781 crore in the corresponding period of the preceding fiscal, beating CNBC-TV18 poll’s forecast of ₹4,448 crore for the quarter under review.
At the operating level, EBITDA jumped 66.2% to ₹869.6 crore in the second quarter of this fiscal over ₹523.2 crore in the corresponding period in the previous fiscal. The CNBC-TV18 poll had predicted an EBITDA of ₹874 crore for the quarter under review.
EBITDA margin stood at 19% in the reporting quarter against 13.85% in year-ago period. EBITDA is earnings before interest, tax, depreciation, and amortisation. A margin of 19.65% had been estimated by the CNBC-TV18 poll for the quarter under review.
The company's net revenue surged 21% from ₹3,781 crore to ₹4,585 crore compared to the same period last year. The total sales volume also showed a notable uptick, increasing by 10% year-on-year, from 7.46 million tonnes (MT) to 8.20 MT.
One key highlight of Shree Cement's Q2 performance is the improvement in capacity utilisation, which rose from 65% to 71% on a YoY basis. Furthermore, sales of premium products rose to 9.5% of the total trade sales, compared to 7.5% in the previous year.
The board of directors approved the setting up of a brownfield cement grinding capacity of 3.40 MT per annum capacity at the company’s existing facilities in Baloda Bazar district of Chhattisgarh with an estimated capital expenditure of ₹550 crore. This project is estimated to be completed by September 2025.
The results came after the close of the market hours. Shares of Shree Cement ended at ₹26,692.15, up by ₹291.75, or 1.11%, on the BSE.
