Profit before tax slipped by 38.86% to Rs 384.20 crore in Q3 FY23 as compared with Rs 628.42 crore posted in Q3 FY22.

Total expenses increased 26.78% YoY to Rs 3,845.82 crore in Q3 FY23. Fuel costs stood at Rs 1,302.7 crore (up 61.26% YoY) while raw material costs was at Rs 309.97 crore (up 9.51% YoY).

During the quarter, total volume increased 23% YoY to 8.03 million tonne from 6.55 million tonne posted in Q3 FY22.

Operating profit (EBIDTA) de-grew 7% YoY to Rs 869 crore during the period under review.

Neeraj Akhoury, managing director of Shree Cement said, “Shree Cement continues its strong focus on operational efficiencies to mitigate increase in the input costs including fuel. We are determined to become the greenest cement company with global scale performance on power mix. We are continuing to strengthen our technology fundamentals with digitalization and this will enable us to create a significant advancement on customer satisfaction.”

“In the quarter gone by, there has been a strong momentum in cement demand due to rise in construction activities. In the Union Budget 2023-24, capital investments has been given a major fillip by providing ever highest allocation of ₹10 lakh crore and cement demand, being linked with capex activities, would surely get a big boost from the same. We will continue to build new plants to meet the growing cement demand in India,” hed added.

On the outlook front the company said, “Given the government's focus on infrastructure growth in the Union Budget 2023-24 through higher allocation for road construction projects, Pradhan Mantri Awas Yojana (PMAY), ever highest capital investment outlay, etc. and other overall buoyancy in the economy, cement sector is poised for robust growth in coming years. However, rising input costs led by higher fuel prices may impact the margins.”

On consolidated basis, the cement maker's net profit slumped 41.48% to Rs 282.07 crore despite of 18.21% rise in revenue from operations to Rs 4,299.26 crore in Q3 FY23 over Q3 FY22.

Meanwhile, the board of directors of the company declared an interim dividend of Rs 45 per equity share for the financial year 2022-23.

Shree Cement is one of India's top three cement producers. Its portfolio of products includes Shree Jung Rodhak Cement, Bangur Cement, Roofon and Rockstrong Cement.