Shree Cement reports 67% profit drop

Shree Cement Ltd has reported standalone revenue of INR37,810m (US$458.8m) in the quarter ended 30 September, 2022. This compares to INR32,058m in the same period a year earlier, representing an 18 per cent YoY increase.

However, net profit over the same period fell by 67 per cent from INR5777m to INR1896m. Total expenses in the September 2022 quarter came in at INR36,882m, notably up from the INR26,137m reported in the same period a year ago. Much of this advance was due to power and fuel costs which increased from INR6283m to INR12,269m. Basic earnings per share declined from INR160.11 in the quarter ended 30 September, 2021, to INR52.55 in the comparable period this year.

Volumes over the September 2022 quarter advanced by 18 per cent YoY to 7.46Mt.

The company currently has 14 manufacturing locations with a presence in 10 states across India. Production capacity in March 2022 stood at 46.4Mta, which the company is hoping to expand to 80Mta by 2030. During the last fiscal, it commissioned two new projects - a third kiln with 4Mta capacity in Raipur, Chhattisgarh, and a 3Mta greenfield project at its grinding unit in Patas, Pune. It is also in the process of setting up an integrated cement plant at Nawalgarh, Rajasthan at a cost of INR35,000m, including a waste heat-based power generation facility, which is due to be commissioned by March 2024. A further 3Mta of capacity is being set up at a new grinding unit in West Bengal through a wholly-owned subsidiary.