Shree Cement Q3 Results: Net Profit Falls 72%
Shree Cement's revenue in Q3 declined 11.9% year-on-year to Rs 4,573 crore.
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Shree Cement Ltd.'s net profit slipped to Rs 193 crore in the quarter ended ended Dec. 31, 2024, down 72.4% as compared to Rs 702 crore in the same period last year, as per the consolidated financial results declared by the company on Thursday.
The cement maker's revenue fell 11.9% to Rs 4,573 crore for the quarter under review from Rs 5,193.5 crore in the corresponding quarter of the last fiscal.
The earnings before interest, tax, depreciation and amortisation slipped to Rs 964 crore, down 23.7% as compared to Rs 1,264 crore in the year-ago period. The margins narrowed to 21.1% from 24.3%.
Shree Cement Q3FY25 Highlights (Consolidated, YoY)
Net profit down 72.4% at Rs 193 crore versus Rs 702 crore.
Revenue down 11.9% at Rs 4,573 crore versus Rs 5,193.5 crore.
Ebitda down 23.7% at Rs 964 crore versus Rs 1,264 crore.
Margin at 21.1% versus 24.3%.
The Kolkata-based firm announced an interim dividend of Rs 50 per share for fiscal 2025.
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Shree Cement, in its press release, said the company expects the cement demand to "grow on the back of likely increase in rural consumption aided by improved farm cash flows". Sustained demand for urban housing and expected increase in government spending on infrastructure projects also "augurs well for the cement industry going forward", it added.
The company is looking for new opportunities to reach its goal of having more than 80 million tonnes per annum capacity by 2028, the company added.
"Looking ahead, we remain committed to increasing the volume of our premium product offerings and maintaining our relentless focus on further cost optimisation,” said Neeraj Akhoury, managing director of Shree Cement.
Shares of Shree Cement closed 0.67% higher at Rs 26,830.5 apiece on the NSE, compared to a 0.37% rise in the benchmark Nifty 50. The stock has fallen by 4.44% in the last 12 months.
Out of 42 analysts tracking the company, 15 maintain a 'buy' rating on the stock, 18 recommend 'hold', and nine suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential downside of 2%.
