Latest news with #ShreeCementLtd
Yahoo
15-05-2025
- Business
- Yahoo
Shree Cement Ltd (BOM:500387) Q4 2025 Earnings Call Highlights: Strong Growth in Sales and ...
Total Sales Volume: Increased to 9.84 million tonnes, up 13% from 8.67 million tonnes sequentially. Average Valuation per Tonne: Improved by 5% to INR4,768 from INR4,554 sequentially. EBITDA: INR1,383 crores, representing a growth of 47%. EBITDA per Tonne: Increased by 29% to INR1,406 from INR1,088 sequentially. Adjusted EBITDA per Tonne: INR1,437, accounting for a one-off item of INR30.66 crores. Green Energy Share: 60.2% of total energy consumption in Q4 FY25. Green Power Generation Capacity: 582 megawatts, up 21% from 480 megawatts at the beginning of FY24-25. Installed Cement Capacity: Increased to 62.8 million tonnes in India. Premium Product Sales Share: Increased from 11.9% in Q4 2024 to 15.6% in Q4 FY25. Additional Provision for ECL: INR24 crores for legal notices issued. Warning! GuruFocus has detected 8 Warning Signs with BOM:500387. Release Date: May 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Shree Cement Ltd (BOM:500387) reported a 13% increase in total India sales volume, reaching 9.84 million tonnes in Q4 FY25. The company's EBITDA for the quarter grew by 47%, with EBITDA per tonne increasing by 29% to INR1,406. The company achieved a significant milestone with 60.2% of its energy consumption coming from green energy sources, one of the highest in the industry. Shree Cement Ltd (BOM:500387) received an ESG rating of Care Edge ESG 1 with a score of 70.8%, highlighting its leadership in managing ESG risks. The company launched several premium products, increasing the share of premium product sales from 11.9% to 15.6% year-over-year. Despite the positive results, the company faces challenges with capacity utilization, which remains around 65%, indicating underutilization of its installed capacity. The company incurred a one-off cost of INR30.66 crores due to a voluntary separation scheme, impacting its financials. Shree Cement Ltd (BOM:500387) made an additional provision of INR24 crores for expected credit losses, reflecting a more conservative accounting approach. The company's strategy to focus on profitability over volume growth may limit its market share expansion in a competitive industry. There are concerns about the impact of new capacity additions on pricing and market dynamics, especially with the industry's supply overhang. Q: What is the outlook for volume growth in FY26, given the recent capacity expansions? A: Ashok Bhandari, Senior Adviser, explained that the strategy is to focus on profitability rather than volume. The company expects a volume growth of 6.5% to 7.5% for FY26, with a target of reaching 39 million tonnes. The focus will remain on balancing volume and price to maximize profitability. Q: Can you elaborate on the branding strategy and its impact on pricing? A: Neeraj Akhoury, Managing Director, stated that the company is focusing on improving brand equity through premium products and technical work in the field. The strategy is consistent across regions, aiming to enhance brand strength and improve pricing. Q: What are the plans for capacity expansion, particularly in North India? A: Neeraj Akhoury mentioned that the company is targeting Central and East UP markets with the new Ita plant. The North plants will cater to various markets, including Jammu and Kashmir, Gujarat, and West MP. The company is also exploring opportunities in Jaisalmer for future expansion. Q: How does the company plan to manage the trade-off between volume and pricing in a supply overhang scenario? A: Ashok Bhandari emphasized that the company aims to be the most profitable rather than the largest volume player. The focus is on maximizing cash profit and net profit through a strategic mix of volume and pricing, considering market conditions and competition. Q: What is the status of the RMC business, and what are the future plans? A: Neeraj Akhoury shared that the RMC division is relatively new, with about 15 plants currently operational. The company plans to expand rapidly, aiming for at least 50 RMC units. Some plants are already EBITDA positive, particularly in Mumbai and Hyderabad. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Economic Times
14-05-2025
- Business
- Economic Times
Shree Cement Q4 Results: Profit falls 15% to Rs 575 crore
Shree Cement Ltd, the country's third largest cement group by capacity, on Wednesday reported 14.9 per cent decline in consolidated net profit to Rs 575 crore for March quarter FY25. The company had posted a net profit of Rs 675.75 crore for the January-March period a year ago, according to a regulatory filing from the Bangur family-promoted Shree Cement Ltd (SCL). ADVERTISEMENT Revenue from operations was higher at Rs 5,532.02 crore during the quarter as compared with Rs 5,401.01 crore in the corresponding quarter of the preceding fiscal. Total expenses were at Rs 4,932.28 crore, up 3.9 per cent in the March quarter of FY25. In the quarter, total sales volume was at 9.84 million tonne (MT), which, according to SCL, is the "highest" quarterly volume achieved by the company. In Q4FY24, total sales volume was at 9.53 MT. Moreover, the contribution from sales of premium products increased to 15.6 per cent of trade. Total income of SCL, which includes other income, was up at Rs 5,689.95 crore in the March quarter as against Rs 5,550.64 crore a year ago. ADVERTISEMENT In FY25, SCL's net profit was down to Rs 1,123.8 crore from Rs 2,396.16 crore a year ago. Total consolidated revenue from operations was at Rs 19,282.83 crore as against Rs 20,403.8 crore. Commenting on results, Managing Director Neeraj Akhoury said the company's continued focus on premium products and operational efficiency has enabled it to deliver improved profitability. ADVERTISEMENT Updating about the expansion plans, SCL said in April 2025, the company commissioned a cement grinding unit in Etah, Uttar Pradesh with 3 MTPA capacity and another cement grinding unit at Baloda Bazar, Chhattisgarh, with 3.40 MTPA capacity. "This has taken the group's total installed cement production capacity to 62.8 MTPA in India. The company's other ongoing projects of integrated cement unit in Jaitaran, Rajasthan and Kodla, Karnataka are scheduled for commissioning by the end of Q1 FY26 and Q2 FY26, respectively," it said. ADVERTISEMENT Further, SCL has decided that, out of two cement mills of aggregate 6 MTPA capacity planned earlier at Jaitaran, Rajasthan, only one will be commissioned while the other will be installed later, it added. The company's board has recommended a final dividend of Rs 60 per share, in addition to an interim dividend of Rs 50 per share for 2024-25 declared in January. ADVERTISEMENT Over the outlook, the company said in FY26, the cement industry is expected to achieve 6.5-7.5 per cent demand growth fuelled by infra projects, rural recovery and real estate momentum, though external challenges in terms of geo-political conflicts and trade barriers by key economies will persist. "As we move into FY6, we remain optimistic about improved cement demand and will therefore continue to drive our strategic initiatives of premiumization, geo-mix and cost optimisation," said Akhoury. Shree Cement owns brands such as Roofon, Bangur Power, Shree Jung Rodhak, Bangur Cement, Powermax, Magna and Rockstrong. Shares of the company settled at Rs 30,631.90 apiece on BSE, up 1.43 per cent from the previous close.
