Shree Cement Ltd reported a 68.4% rise in consolidated net profit at Rs 527.87 crore during the September quarter of FY 21, as against a net profit of Rs 313.30 crore during the same period last year led by better realisations and cost savings.
The company’s revenue from operations went up 8% at Rs 3249.93 crore. Shree Cement’s earnings before interest, taxes, depreciation and amortisation grew by 17% year-on-year and 41% quarter on quarter to Rs 990 crore.
The Ebitda/tonne stood at Rs 1,510 during the September quarter as against Rs1451 in the same quarter last year.
On a quarterly basis, Shree Cement’s total expenses came down by 21% at Rs 2623.82 crore, while it was 2163 during the June quarter. The company’s finance cost has come down by12% to Rs 63.90 crore and the employee cost has come down by 8% to Rs 197.79 crore during the quarter under review
The company’s operating cost per tonne came down by 5% year-on year to Rs 3, 046 mainly led by sharp contraction in input cost/tonne at Rs 1, 031, said Reliance Securities in a report.
“Strong performance was primarily driven by costs reductions, strong sales volume and steady realisation. Operating cost/tonne remained industry’s leading and the company’s cost leadership is maintained,” said Binod Modi, Head, Strategy at Reliance Securities.
Shree Cement’s sales volume including clinker of 0.13 million tonne stood at 6.53 mt a rise of 14% YoY, said a note by Reliance Securities.
“Going forward, continued volume traction and recent pick up in realizations in its key markets are likely to aid the company’s profitability. We have BUY rating on the stock,” Modi added.
Shares of Shree Cement were up 0.62% to Rs 22,875 after the result announcement.