Shree Cement Ltd’s consolidated net profit for Q4 FY24, attributed to the owners, soared by almost 28% year-on-year to Rs 674.9 crore, surpassing market expectations. This impressive performance was buoyed by inventory gains, as per the company’s quarterly results disclosed on May 14. In comparison, the firm had reported a consolidated net profit of Rs 525.8 crore in the corresponding quarter of the previous year. Moreover, revenue from operations for the fiscal fourth quarter witnessed a robust increase of over 6% year-on-year, reaching Rs 5,433 crore. However, sequentially, profit dipped by 3%, while revenue surged by 4%.
The company’s results exceeded the estimates of financial analysts. Additionally, Shree Cement declared a final dividend of Rs 55 per equity share for FY24.
On a standalone basis, the net profit saw a 21% year-on-year rise to Rs 661 crore, while revenue exhibited a 7% year-on-year increase from Rs 4,785 crore to Rs 5,101 crore.
Shree Cement attributed the strong cement demand in India to the government’s infrastructure development initiatives, sustained real estate activity, and expectations of a favorable monsoon, aligning with the nation’s broader economic objectives.
During the quarter, the company commissioned a Rs 2,500-crore plant in Guntur, Andhra Pradesh, elevating its manufacturing capacity to 56.4 million tonnes per annum (MTPA). Additionally, it reported that other capacity expansion projects totaling 18 million tonnes are progressing as scheduled. Upon completion, the total cement production capacity of the company in India is expected to reach 74.80 million tonnes.
The ramp-up in production volumes, facilitated by capacity expansions, contributed significantly to revenue growth, with analysts estimating a 5-7% year-over-year rise. Total sale volume in Q4 FY24 increased by 8% year-on-year, from 8.83 million tonnes to 9.53 million tonnes, with an annual volume reaching 35.5 million tonnes, reflecting a 12% growth.
Shree Cement’s ambitious expansion plans aim to achieve a capacity of 80 MTPA by 2028, with 13 additional plants slated to be operational by then, five of which are expected to commence operations in FY25. In FY24, the company expanded its capacity by 9.5 MTPA through three greenfield plants, involving an investment exceeding Rs 7,000 crore.
For the fiscal year, consolidated revenue from operations surged by 15% to Rs 20,521 crore from Rs 17,852.3 crore reported in the previous year. Profit attributable to the owners witnessed a substantial increase of nearly 89% to Rs 2,395.7 crore. Annual EBIDTA reached Rs 4,364 crore, marking the highest-ever level for the company.
