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Shree Cement has posted 103% growth in consolidated net profit to Rs 631.58 crore on 13% incline in total income from operation to Rs 3,541.38 crore for third quarter ended December 2020. Operating Margin (OPM) rose by 380 bps to 31.8%. Thus, operating profit (OP) grew 28% to Rs 1,125.92 crore.
Performance for the quarter ended December 2020
Total consolidated income from operation inclined 13% to Rs 3,54138 crore for the third quarter ended December 2020. OPM increased to 380 bps to 31.8%. The increment in OPM was due to decline in employee costs by 170 bps to 5.4%, other expenses by 100 bps to 14.2%, power & fuel cost by 120 bps to 17.9%, and raw material costs by 10 bps to 7.4% as percentage to sales and net of stock adjustments were partially offset by gain in freight & forwarding cost by 140 bps to 23.2%. As a result, the OP inclined 28% to Rs 1,125.92 crore.
The other income inclined by 65% to Rs 108 crore. The interest cost fell 21% to Rs 59.52 crore and depreciation went down 30% to Rs 322.26 crore. Thus, PBT inclined by 108% to Rs 852.14 crore. The net tax outgo was up 125% to Rs 220.56 crore during the quarter, thus, the consolidated Net Profit zoomed up 103% to Rs 631.58 crore
Nine Months ended December performance
For Nine Months ended December 2020, Sales of the company declined 2% to Rs 9,271.45 crore. OPM inclined by 180 bps to 30.3%, thus, OP grew by 4% at Rs 2,813.60 crore. Other income advanced 92% to Rs 337.84 crore. After accounting for finance charges (down 10% to Rs 195.01 crore), depreciation (down 31% at Rs 932.13 crore), the PBT inclined 54% to Rs 2,024.30 crore. The tax outgo was up 72% to Rs 534.50 crore. The effective tax rate rose 280 bps to 26.4%. Thus, the Net Profit increased 48% to Rs 1,489.80 crore.
Annual Financial Performance (FY 2020)
Total consolidated revenue inclined by 2% to Rs 12,868.39 crore for the fiscal year ended March 2020. OPM improved by 700 bps to 29.2%, thus, OP advanced by 35% to Rs 3,759.10 crore. Other income grew by 10% to Rs 274.40 crore. The interest cost increased by 18% to Rs 291.43 crore. The depreciation went up 23% to Rs 1,807.81 crore. The PBT before EO, as a result, rose 46% to Rs 1,934.26 crore. The Company booked NIL EO exceptional income/losses during the period as against EO exceptional losses of Rs 178.13 crore in financial instruments corresponding previous period. As a result, PBT after EO rose 69% to Rs 1,934.26 crore. The company net tax outgo rose by 199% to Rs 390.20 crore, thus, PAT before MI advanced by 52% to Rs 1,544.06 crore. After accounting Rs 8.21 crore outflows in Minority interest, the Net Profit rose 52% to Rs 1,535.85 crore
The scrip was last traded at Rs 22,748.85 (29 January 2021) on the BSE.
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