Shree Cement October-December Profit Rises 21% to ₹2.79 Billion; Eyes 80 MT Capacity

Shree CementLimited reported a 21% year-on-year increase in profit after tax (PAT) to ₹2.79 billion for  October-December. According to the press release to the exchanges the company’s net revenue from operations rose by 4% to ₹44.16 billion, compared to ₹42.35 billion in the corresponding quarter of the previous fiscal year.

The company’s operating profit (EBITDA) stood at ₹9.17 billion, a decline of 3% from ₹9.47 billion in the same period last year. The regulatory filing attributed this decrease largely to operating leverage. The reported EBITDA excludes a one-time impact of an additional employee benefit obligation amounting to ₹559.9 million, which resulted from the notification of new labour codes.

Operational data released by the company showed that total cement sale volume increased by 2% year-on-year. However, the filing noted that sales volumes were adversely impacted during the quarter due to production losses caused by operations disruption at Baloda Bazar, Chhattisgarh. A key driver for the quarter was the shift in product mix; sales of premium products jumped to 22% of total trade volume, up from 15% in the corresponding previous quarter.

During the quarter, the company also commissioned a cement line with a capacity of 3.00 million tonnes per annum (MTPA) at its integrated project in Jaitaran, Rajasthan. This increased the company’s total installed cement production capacity in India to 65.8 MTPA. The company further disclosed that work on its 3.0 MTPA integrated project at Kodla, Karnataka, is nearly completed. Pre-commissioning activities are underway, with the plant expected to be commissioned within the current quarter. In its corporate profile, the company reiterated its goal to surpass 80 million tonnes (MT) of production capacity in the coming years.

The company highlighted the rapid expansion of its Ready-Mix Concrete (RMC) business, which currently operates 25 plants. Sales volume in this segment recorded a jump of 143% year-on-year, with the firm increasing its market reach across key geographies.