Shree Cement profit falls 15% YoY to Rs 263 crore on higher fuel costs

Shree Cement reports another quarterly profit decline as fuel costs surge, despite stronger revenue, higher sales volumes and growing demand for premium cement products.

The country’s third-largest cement producer by capacity recorded a 14% year-on-year increase in sales volume to 10.52 million tonnes during the quarter, while revenue from operations rose 24% to Rs 5,897 crore.

Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) rose to Rs 1,016 crore from Rs 974 crore a year earlier. However, EBITDA per tonne of cement fell 8% year-on-year to Rs 966 from Rs 1,055, primarily due to elevated fuel costs.

Consolidated power and fuel costs rose nearly 56% on year to Rs 1,843.25 crore.

Premium products accounted for 28.7% of the company’s trade volumes in India, up from 21.1% in the year-ago period.

“Our continued focus on premiumisation is reflected in premium products contributing 29% of trade volumes, underscoring the strength of our brands and customer relationships,” managing director Neeraj Akhoury said. “Backed by initiatives to gain market share and a disciplined approach to cost and efficiency enhancement, we are well-positioned to deliver sustainable and profitable growth in the quarters ahead.”

While a weak monsoon could weigh on rural demand, continued investments in roads, railways, housing and data centres are expected to support cement demand, the company said in a statement.

Shree Cement shares closed at Rs 22,760 on the BSE on Friday, up 2% from the previous close. The company reported its earnings during market hours.