Shree Cement Q2 Results: Profit plunges over 80% to Rs 93 crore on weak demand, prices

Kolkata-based Shree Cement’s profit plunged more than 80% on year to Rs 93.13 crore in the September quarter, weighed down by weakness in both demand and prices for the building material during the three-month period.

While the September quarter is seasonally weak for cement-makers, the country’s third largest producer’s sales volume slipped as compared to the previous year as well - 7% lower at 7.60 million tonne.

“Despite strong headwinds on account of extended monsoon and softer pricing environment across the industry, Shree Cement has delivered a steady performance on the back of accelerated operational efficiency measures, focused cost optimisation drive and product premiumisation initiatives,” managing director Neeraj Akhoury said in a statement.


The company’s net revenue from operations fell 18% on year to Rs 3,727 crore, while earnings before interest, tax, depreciation and amortization fell 32% on year to Rs 593 crore.

As compared to the June quarter, Shree Cement’s net revenue fell 23%, its EBITDA was 35% lower, while profit slumped 71%.

“In the second half of FY24-25, an uptick in demand is expected on account of the release of budgetary allocations and on-ground execution of the infra projects. Further, higher rural demand is expected on the back of good kharif crop and improved farm prices,” the company said in its outlook.

“Spending under additional houses in the PMAY scheme (rural and urban) and increase in industrial & commercial capex is also expected to drive cement demand in the near future,” it said.

Shree Cement currently has a production capacity of nearly 47 million tonne, and aims to increase this to more than 80 million tonne by 2028. It is currently expanding capacities at Jaitaran in Rajasthan, Kodla in Karnataka, Baloda Bazar in Chhattisgarh and Etah in Uttar Pradesh.