Shree Cement Q2 Results Review - Ebitda/Tonne Fall To Seven Year Low: Centrum Broking

Ebitda/tonne stood lower by Rs 364/tonne (down 33% QoQ) to seven year low of Rs 737/tonne.

<div class="paragraphs"><p>A worker levelling the surface with cement mixture. (Source: freepik)</p></div>
A worker levelling the surface with cement mixture. (Source: freepik)

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Centrum Broking Report

Shree Cement Ltd. reported lower than expected Ebitda of Rs 5.23 billion, down 36% QoQ (our estimate: Rs 6 billion). The sequential decrease in Ebitda was due to lower volume and realisation QoQ and higher raw material cost on account of rise in inventory levels.

Though, cost of production remained flat QoQ offset by lower power and fuel cost. Ebitda/tonne stood lower by Rs 364/tonne (down 33% QoQ) to seven year low of Rs 737/tonne.

Power and fuel cost/tonne fell 11% QoQ on account of decrease in coal/petcoke prices and expect larger effect of prices decline will be visible in Q3 FY23. 

The overall net working capital days increased from 22 days to 64 days largely due to higher inventory days from 46 days as on March 2022 end to 57 days as on Sept 2022 end.

Shree Cement intends to increase overall cement capacity from 46 million tonnes per annum to 80 mtpa by FY30. We expect margins to bottom out in Q2 FY23.

Click on the attachment to read the full report:

Centrum Shree Cement - Q2FY23 Result Update.pdf


This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.