Shree Cement Q3 net profit rises two-fold to Rs 701.85 crore

New Delhi: Bangur family-promoted Shree Cement Ltd on Wednesday reported an over two-fold jump in its consolidated net profit to Rs 701.85 crore for the third quarter ended December 2023.

The company had posted a net profit of Rs 281.83 crore in the October-December period a year ago, according to a regulatory filing.

Its revenue from operations grew 21.5 per cent to Rs 5,223.18 crore during the quarter under review. It was at Rs 4,299.26 crore in the corresponding period of the preceding fiscal.

In the December quarter, it had a "strong & all-round performance led by improved realisation & cost reduction amidst robust demand growth," the company said in a quarterly earnings statement.

The total sale volume of Shree Cement Ltd (SCL) increased Year-on-Year (YoY) by 11 per cent from 8.03 million tonnes to 8.89 million tonnes. Its capacity utilisation improved from 72 per cent to 77 per cent on YoY basis.

Total expenses of SCL grew 9.12 per cent to Rs 4,458.01 crore in the December quarter.

SCL's total income in the December quarter rose 20.05 per cent to Rs 5,370.65 crore.

About capacity expansion plans, SCL said work on 18 million tonnes capacity expansion projects already announced is running as per schedule.

Additionally, it has decided to add one more cement mill of 3 million tonnes per annum capacity at its upcoming plant in Rajasthan.

On completion, SCL's total India cement capacity will be around 75 million tonnes, it added.

SCL Managing Director Neeraj Akhoury said the company is "executing a comprehensive performance improvement plan, and we are experiencing a positive impact." "Strong volume growth along with building premium products through accelerated channel expansion and softening of fuel prices has helped us to deliver a robust improvement...We are fully prepared to complete our various projects to reach beyond 80 million tonnes cement production capacity by year 2028," he said.

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

Shares of the company settled 1.82 per cent higher at Rs 519.60 apiece on the BSE.