On November 11, 2024, Shree Cement released their Q2 results, which showed a sharp drop in sales over the prior year. The business’s top line fell 15.54% year over year, and its profit fell a startling 82.89%. Compared to the prior quarter, profit dropped 72.56% and revenue dropped 20.88%.
According to Shree Cement, selling, general, and administrative expenses decreased by 14.35% from quarter to quarter and by 1.68% from year to year. This cut, nevertheless, was insufficient to counteract the sharp decline in sales and profit. With a decline of 145.93% from the previous quarter and a decline of 121.59% from the previous year, the operating income for the quarter was especially alarming. Both analysts and investors are alarmed by this sharp drop.
Shree Cement Q2 Results
Operating revenue fell 18.3% year over year to ₹3,727 crore from ₹4,585 crore the year before. This was less than the ₹3,910 crore target revenue for the poll. EBITDA, or earnings before interest, taxes, depreciation, and amortization, for Shree Cement also fell 32%, from ₹870 crore in Q2 of FY24 to ₹592.6 crore in the second quarter.
In Q2 of FY25, the EBITDA margin was 15.9%, which was in line with market forecasts and just lower than the 17.1% margin from the previous year. The quarter’s total sales volume decreased from 8.20 million tonnes (MT) to 7.60 MT, a 7% YoY decline.
About the Company – Shree Cement Ltd.
Shree Cement Ltd. is a leading cement manufacturer in India. The company operates manufacturing facilities in six states in North and East India. 888.6 MW of power can be generated by the enterprise, and it can produce 46.40 million tonnes of cement annually (MTPA). Shree Ultra Jung Rodhak Cement, Bangur Cement, and Rockstrong Cement are the three brands that they offer. Their production facilities are situated in Jobner (Jaipur) in Rajasthan, Beawar Ras Khushkhera in Suratgarh, and Laksar (Roorkee) in Uttarakhand. Panipat in Haryana, Bulandshahr in Uttar Pradesh, Aurangabad in Bihar, and Baloda Bazar in Chhattisgarh.
