Shree Cement Ltd on Wednesday reported its third quarter profit for the financial year 2023-24 at Rs 701.89 crore, up 148.8 per cent in comparison to Rs 282.07 crore during the corresponding quarter of previous year. It posted revenue from operations at Rs 5223.18 crore, up 21.5 per cent as against Rs 4299.26 crore during the third quarter of FY23. While the total income recorded by the company during Q3FY24 was at Rs 5370.65 crore, total expenses incurred during the quarter in review stood at Rs 4458.01 crore.
The Board of Directors of the company also declared an interim dividend of Rs 50 per share for the year 2023-24.
Shree Cement said that its capacity utilization improved from 72 per cent to 77 per cent on YoY basis. The company said that the sale of premium products rose to 9.5 per cent vis-à-vis 7.2 per cent of total trade sales on YoY basis.
Neeraj Akhoury, Managing Director, Shree Cement Ltd, said, “Shree Cement is executing a comprehensive performance improvement plan, and we are experiencing a positive impact. Strong volume growth along with building premium products through accelerated channel expansion and softening of fuel prices has helped us to deliver a robust improvement. We have embarked upon a comprehensive re-branding program which will help us build a differentiated positioning and win consumers’ delight. We have commissioned Purulia and Nawalgarh plant this year and our capacity growth plans are on track.”
“We are confident of our potential to continue demonstrating superior performance. Our country is rapidly progressing on both housing and infrastructure, and this will provide a solid platform for India’s cement demand growth. We are fully prepared to complete our various projects to reach beyond 80 million tonnes cement production capacity by year 2028,” he added.
In line with the company’s announcement of diversifying to the Ready Mix Concrete (RMC) segment by setting up 5 RMC units by year end, the company has started work on setting up 3 RMC plants in the month of January2024 and actively working on materializing the remaining units.
Shree Cement’s capex plans
The company recently commenced commercial production from its integrated cement plant at village Gothra in Nawalgarh Tehsil of Rajasthan having clinker capacity of 11500 tonnes per day (3.8 million tonnes per annum) and cement capacity at 3.5 million tonnes per annum w.e.f. 22nd January 2024. The work on 18 million tonnes capacity expansion projects already announced is running as per schedule, it said.. Additionally, the company has decided to add one more cement mill of 3.0 million tonnes per annum capacity at its upcoming plant at Ras in Rajasthan. On completion, its total India cement capacity will be around 75 million tonnes.
