Shree Cement Q3 Preview: Profit May Nearly Double As Ebitda Per Tonne Rises
The cement manufacturing company's net profit may jump 90% YoY to Rs 536.9 crore in the December quarter, with the Ebitda margin improving by 480 bps, according to Bloomberg consensus estimates.
Shree Cement Ltd.'s third-quarter profit may nearly double due to price hikes, reduced fuel expenses, and cost optimisation efforts leading to a higher Ebitda per tonne.
The cement manufacturing company's net profit may jump 90% year-on-year to Rs 536.9 crore in the quarter ended December, with the Ebitda margin improving by 480 basis points, according to Bloomberg consensus estimates.
Shree Cement Q3 Results Preview: Bloomberg Estimates (YoY)
Revenue may rise 17% to Rs 5,029.1crore.
Ebitda may rise 50% to Rs 1,089.5 crore.
Margin may rise to 21.7% vs 16.9%
Net profit may rise 90% to Rs 536.9 crore
Higher Volumes Due To Better Demand
While larger players like UltraTech Cement Ltd. did report lower than expected volume growth of 6%, brokerages believe that Shree Cement would be one of the players likely to outperform. On average, brokerages expect 11% year-on-year volume growth for Shree Cement.
Underlying Factors To Give Better Results
The lower input costs and higher estimated volumes on average are likely to lead to a 4% year-on-year improvement in realisations. Brokerages also expect an approximate 32.7% growth in Ebitda per tonne for Shree Cement.
Higher volumes and better realisations are expected to lead to a 20.4% increase in Shree Cement's Q3 revenues. The lower input costs leading to an improvement in the company's Ebitda per tonne is expected to increase the company's Ebitda by 50.4% YoY on average.