SDCC profit hampered by fuel costs in 2QFY22-23

India-based Shree Digvijay Cement Co Ltd (SDCC) has reported revenue from operations of INR1620.1m (US$19.6m) in the quarter ended 30 September 2022 (2QFY23), compared to INR1538.8m in the same period a year earlier. Over the same timeframe, EBITDA fell from INR285.2m to INR171.7m, while profit after tax tumbled from INR134m to INR59.6m. In the 2QFY22-23, power and fuel expenses stood at INR819.1m, compared to INR448.5m in the same period a year earlier.

“Despite a very challenging quarter of continuous steep rise in energy costs and heavy monsoon, SDCC have produced best plant performance and achieved EBITDA of INR600 per tonne,” said Anil Singhvi, executive chairman of the company. “During the quarter, SDCC have also started operations of ‘SDCC Logistics’, a wholly-owned subsidiary of SDCC utilising our captive port at Sikka.”

For the six months ended 30 September 2022, revenue from operations came in at INR3232.4m, up from INR3085.8m in the same quarter a year ago. EBITDA fell from INR704.7m to INR496.4m, and profit after tax declined from INR351.3m to INR231m. Over the same period, power and fuel expenses advanced from INR884.5m to INR1499.6m. 

Commenting on the results, Rajeev Nambiar, managing director of SDCC, said, “SDCC continues to be on a positive trajectory. We remain focused on our strategy to get the best operational parameters and are continuously working on optimising costs and our manufacturing facility to achieve the newer highs. Besides this, as a prime initiative to keep the energy cost under control, we have switched to 100 per cent petcoke usage which is benefitting us to a large extent.” 

SDCC produces cement under the Kamal brand and operates one integrated plant at Digvijay, Jamnagar District.