Shree Cement has reported a growth of 143.73 per cent in its net consolidated profit during the quarter ended September 30, 2023. Its profit after tax stood at Rs 446.62 crore in Q2 FY24 as against Rs 183.24 crore it registered in the similar quarter last year, the company said in a BSE filing.
The company’s net consolidated total income stood at Rs 4,932.11 crore in Q2 FY24, a growth of 17.50 per cent from Rs 4,197.37 crore it recorded in the similar quarter last year.
Neeraj Akhoury, managing director of the company said, “We are excited to announce our Q2 performance with strong EBIDTA generation of ₹870 crore on the back of volume growth of 10% and improved operational matrices. We are aggressively marching ahead on our expansion plans to achieve our target of going beyond 80 million tons capacity by 2028.”
During the quarter, Shree Cement East, wholly-owned subsidiary of the company, had commenced commercial production at its clinker grinding unit at Village Digha & Parbatpur, in Purulia district of West Bengal with cement capacity of 3.0 MTPA on July 28, 2023.
As on September 30, 2023, its net worth stood at Rs 19,495.36 crore, debt-equity ratio was 0.08, current liability ratio was 82%, total debts to total assets was 7%, operating margin was 21% and net profit margin 9%.
Total sale volume increased year-on-year by 10% from 7.46 million tonnes to 8.20 million tonnes, capacity utilization improved from 65% to 71% year-on-year basis during the said quarter.
The board of directors approved setting up of brownfield cement grinding capacity of 3.40 million tonnes per annum capacity at Company’s existing facilities at Baloda Bazar district of Chhattisgarh with estimated capital expenditure of Rs 550 crore. This project is estimated to be completed by September 2025.
The board also approved merger of Shree Cement East and Shree Cement North, wholly owned subsidiaries of the company into Shree Cement subject to applicable regulatory requirements.
The company’s share of green power in total power consumption increased to 58.6% in Q2 FY24 vis-à-vis 50.8% in the corresponding quarter of previous year.
