Shree Cement Q2 FY25 results: Profit down 81% at Rs 93 crore YoY; revenue slips 18%

Shree Cement Ltd on Monday recorded an 81 per cent year-on-year (YoY) slump in its September 2024 quarter (Q2 FY25) standalone net profit due to extended monsoon and softer pricing. During the quarter under review, profit came at Rs 93 crore as against Rs 491 crore in the year-ago period.

The company's revenue from operations fell 18 per cent (YoY) to Rs 3,727 crore from Rs 4,560 crore in the corresponding period last year. Operating profit (EBITDA) declined 32 per cent YoY to Rs 593 crore compared to Rs 870 core in Q2 FY24.

"Led by cost optimization and efficiency measures, total expenditure (excluding depreciation and interest) came down from Rs 4,503/tonne to Rs 4,122/tonne on (a) YoY basis," Shree Cement stated in a release.

Neeraj Akhoury, Managing Director at Shree Cement, said, "Despite strong headwinds on account of extended monsoon and softer pricing environment across the industry, Shree Cement has delivered a steady performance on the back of accelerated operational efficiency measures, focused cost optimisation drive and product premiumisation initiatives. The company expects gradual improvement in demand driven by increased government spending in the second half of the financial year and improved demand from urban and rural segments owing to good monsoon."

On capex plans, the company said its ongoing expansion projects in Jaitaran, Rajasthan (6.0 MTPA), Kodla, Karnataka (3.00 MTPA), Baloda Bazar, Chhattisgarh (3.40 MTPA), and Etah, Uttar Pradesh (3.00 MTPA) are progressing satisfactorily. It expects to commission all these projects by the first quarter of FY25-26.

The quarterly results were declared post market hours today. Earlier in the day, Shree Cement shares slipped 0.66 per cent to close at Rs 24,389.75. At this price, it has fallen 14.31 per cent in 2024 so far.

The counter saw high trading volume on BSE as around 539 shares changed hands. The figure was higher than the two-week average volume of 222 shares. Turnover on the counter came at Rs 1.31 crore, commanding a market capitalisation (m-cap) of Rs 88,107.56 crore.

Shree Cement shares traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The scrip's 14-day relative strength index (RSI) came at 40.66. A level below 30 is defined as oversold while a value above 70 is considered overbought.

According to BSE data, the company's stock has a price-to-equity (P/E) ratio of 40.17 against a price-to-book (P/B) value of 4.35. Earnings per share (EPS) stood at 611.14 with a return on equity (RoE) of 10.82.

As of September 2024, promoters held a 62.55 per cent stake in the company.