Shree Cement on Wednesday posted fiscal first quarter profit at Rs 572.30 crore, up 104.8 per cent in comparison to Rs 279.50 crore during the corresponding quarter of last year, surpassing estimates. It posted revenue from operations at Rs 5064.83 crore, up 14.7 per cent as against Rs 4414.85 crore during Q1FY23. The company EBITDA stood at Rs 932.6 crore. According to CNBC TV18 estimates, Shree Cement was expected to post Q1 profit at Rs 431 crore, and revenue at Rs 4765 crore.
The company posted total income for the quarter at Rs 5233.90 crore, up 19.1 per cent in comparison to Rs 4394.75 crore during the same period last year. However, the total expenses during the first quarter of FY24 was at Rs 4533.67 crore, up 12.8 per cent from Rs 4019.11 crore a year earlier.
The Board also approved an investment for increasing capacity. The proposed capacity addition include – clinker manufacturing plant of 3.65 million tonnes at Pali, Rajasthan and cement capacity of 6.0 million tonnes in Pali, Rajasthan and Etah, Uttar Pradesh; and clinker manufacturing plant of 3.65 million tonnes at Kodla and cement capacity of 6.0 million tonnes at Kodla and Bangalore in Karnataka. The proposed capacity addition is to be done by the quarter ending March 2025 and the total investment required for the same is Rs 7000 crore.
The existing cement capacity of the Company is 49.90 million ton per annum (MTPA) in India. During the year 2022-23, the utilization rate was 70 per cent. “The Board of Directors of the Company has also decided to make strategic diversification in Ready Mix Concrete (RMC) business commencing with plan to set-up 5 RMC Units by this financial year,” it said in a regulatory filing.