SHREE CEMENT LIMITED — Updates, 11-11-2024: Press Release

Shree Cement has reported revenue of ₹3,727 crore and EBITDA of ₹593 crore for the quarter ended September 30, 2024. Despite the challenging demand due to prolonged monsoon and softening prices in the industry, the company maintained its realisation on a QoQ basis through brand equity, product premiumization, and operational efficiencies. The net revenue declined by 18% YoY, while EBITDA fell by 32%, reflecting a decrease in sale volumes, which dropped by 7% YoY to 7.60 million tonnes. Cost optimization initiatives led to a reduction in power and fuel costs by 27% to ₹1,001 crore.

Management anticipates a gradual demand recovery in the second half of the fiscal year, driven by increased government spending and enhanced demand from rural and urban segments. Ongoing expansion projects, set to be commissioned by Q1 FY25-26, will contribute to the company’s capacity target of over 80 MTPA by 2028. The firm is also committed to sustainability, having increased its DJSI CSA score from 62 to 73, and aims for 100% renewable energy use by 2050. Investors should watch closely for potential growth as market conditions improve.