Shree Cement July-September Net Profit Surges 198% on Higher Volumes, Premium Mix

Shree Cement Ltd.’s net profit jumped 198% on year to ₹2.77 billion in the September quarter, driven by higher sales volume, premiumisation, and improved operational efficiency. Sequentially, profit fell over 55%, while revenue declined around 13% to ₹43.03 billion, up more than 15% on year.

Total cement sales volume rose 6.8% on year, with premium products contributing over 21% of total sales compared to around 15% a year ago.

Earnings before interest, tax, depreciation, and amortisation rose nearly 31% on year to ₹10.08 billion. Operating profit jumped 44% to ₹8.51 billion, aided by cost management and operational efficiencies.

During the quarter, the company entered the east India market with a ready-mix concrete plant at Raipur, Chhattisgarh, taking its total operational RMC plants to 24. It also commissioned India’s first solar-powered RMC plant at Jaipur, which now runs primarily on renewable energy.

As part of the transition to GST 2.0, Shree Cement said it has passed on the full benefit of the goods and services tax rate cut to customers from September. 22. Managing Director Neeraj Akhoury said recent policy measures and stable inflation levels would support economic momentum, creating a favourable environment for the cement industry.

Total expenditure rose 5% on year to ₹40.57 billion, led by higher power and fuel costs, other expenses, and freight and forwarding charges. Power and fuel expenses were up nearly 4% at ₹10.40 billion, freight and forwarding costs rose 6% to ₹9.42 billion, and other expenses jumped 16% to ₹6.73 billion. Depreciation and amortisation expenses fell 17% to ₹5.55 billion.

The company announced an interim dividend of ₹80 per share, with Monday as the record date. Payouts will begin from November 14.

For April–September, net profit more than doubled to ₹8.96 billion from ₹4.11 billion a year earlier, while revenue rose around 8% to ₹92.51 billion.