Shree Cement Q1 Net Profit Down 51.3%, Sales Up 8% | Business News

New Delhi, Aug 6 (PTI) Bangur family-promoted Shree Cement Ltd on Tuesday reported a 51.31 per cent decline in its consolidated net profit to Rs 278.45 crore for the first quarter ended in June 2024 on account of sluggish demand.

The company had posted a net profit of Rs 571.94 crore in the April-June period a year ago, according to an exchange filing by Shree Cement Ltd (SCL).

However, its revenue from operations was up 1.73 per cent to Rs 5,123.96 crore during the quarter under review against Rs 5,036.65 crore in the corresponding period of the preceding fiscal.

Total expenses of SCL increased 10.05 per cent to Rs 4,957.24 crore in the June quarter.

SCL's "total sale volume increased by 8 per cent from 8.92 million tonnes to 9.64 million tonnes," according to an earning statement from the company. Sale of premium products stood at 7.6 per cent of total trade sale volume, it added.

In the April-June period, SCL's EBITDA reduced by 2 per cent from Rs 933 crore to Rs 916 crore.

Commenting on the results, Managing Director Neeraj Akhoury said: "We continued to optimise our production processes, enhance cost efficiencies and maintain a strong focus on branding initiatives. These efforts enabled us to navigate the challenging market conditions marked by sluggish demand due to general elections and extreme weather, consistently delivering value to our stakeholders."

Over the outlook, he said SCL will continue to focus on increasing cement manufacturing capacity to gain market share.

"This, along with our consistent product quality, positions us well to capitalise on the anticipated rebound in cement demand driven by enhanced infrastructure allocation in the Union Budget, rising housing demand and expected growth in the rural sector," he said.

While updating over capex plans, SCL said it has commissioned its integrated cement unit at Guntur, Andhra Pradesh with a capacity of 3 million tonnes per annum (MTPA).

Besides, its ongoing expansion projects in Jaitaran, Rajasthan (6 MTPA), Kodla, Karnataka (3 MTPA), Baloda Bazar, Chhattisgarh (3.40 MTPA), and Etah, Uttar Pradesh (3 MTPA) are progressing as per schedule.

"The company is working on further expanding its capacities in different geographies to reach its target ahead of schedule," it said.

Shree Cement is the third largest cement-making firm, owning brands such as Roofon, Bangur Power, Shree Jung Rodhak, Bangur Cement and Rockstrong.

Shree Cement Ltd shares on Tuesday settled at Rs 2,6121.95 apiece on BSE, down 2.28 per cent from the previous close.