Profit before tax was at Rs 350.84 crore in Q1 FY25, down 50.62% from Rs 710.49 crore reported in Q1 FY24.
EBIDTA fell 1.82% to Rs 916 crore in Q1 FY25 as against Rs 933 crore recorded in the corresponding quarter previous year.
Total sales volume grew by 8% to 9.64 million tonnes in the June quarter as compared to 8.92 million tones registered in Q1 FY24.
The company said that the sale of premium products stood at 7.6% of total trade sale volume.
Explaining its capex plans, the company commissioned its integrated cement unit in Guntur district of Andhra Pradesh with cement production capacity of 3.0 Million Tonnes Per Annum (MTPA), during the quarter. Besides this, the firm’s ongoing expansion projects in Jaitaran, Rajasthan (6.0 MTPA), Kodla, Karnataka (3.00 MTPA), Baloda Bazar, Chhattisgarh (3.40 MTPA), and Etah, Uttar Pradesh (3.00 MTPA) are progressing satisfactorily as per schedule. The company is working on further expanding its capacities in different geographies to reach its target ahead of schedule, added the company.
Further, the company stated that the Rs 11 lakh crore capital expenditure announcement in the Union Budget 2024 signifies the government's commitment to modernizing India’s infrastructure through various projects and allocations. This together with 3 crore additional houses in PM Awas Yojana and launch of phase IV of PMGSY will undoubtedly drive demand for cement and other building materials.
Neeraj Akhoury, managing director of Shree Cement, said, “We continued to optimize our production processes, enhance cost efficiencies and maintain a strong focus on branding initiatives. These efforts enabled us to navigate the challenging market conditions marked by sluggish demand due to general elections and extreme weather, consistently delivering value to our stakeholders.”
We will continue our focus on increasing our cement manufacturing capacity to gain market share. This, along with our consistent product quality, positions us well to capitalize on the anticipated rebound in cement demand driven by enhanced infrastructure allocation in the Union Budget, rising housing demand and expected growth in the rural sector."
Shree Cement is one of India's top three cement producers. Its portfolio of products includes Shree Jung Rodhak Cement, Bangur Cement, Roofon and Rockstrong Cement.
Shares of Shree Cement slipped 2.14% to end at Rs 26,159 on the BSE.