On consolidated basis
Quarter ended June 2023 compared
with Quarter ended June 2022.
Net sales (including other operating income) of Shree Cement has increased
14.72% to Rs 5064.83 crore.
Operating profit margin has jumped
from 18.14% to 18.66%, leading to 17.99% rise in operating profit to Rs 944.92
crore. Raw material cost as a % of total sales (net of stock
adjustments) increased from 7.10% to 7.89%. Purchase of finished
goods cost fell from 0.53% to 0.08%. Employee cost decreased from
5.40% to 5.21%. Other expenses fell from 69.21% to 68.29%.
Power and Oil fuel cost fell from 33.57% to 33.28%.
Freight charges rose from 20.28% to 21.09%.
PBIDT rose 42.69% to Rs 1113.99
crore. Provision for interest rose 34.06% to Rs 74.31
crore.
PBDT rose 43.35% to Rs 1039.68
crore. Provision for depreciation fell 2.92% to Rs 339.45
crore.
Profit before tax grew 86.41% to Rs
700.23 crore. Share of profit/loss were nil in both the
periods. Provision for tax was expense of Rs 128.29 crore, compared
to Rs 96.78 crore. Effective tax rate was 18.32% compared to 25.76%.
Minority interest increased 43.75%
to Rs -0.36 crore. Net profit attributable to owners of the company
increased 104.76% to Rs 572.30 crore.
Promoters’ stake was 62.55% as of 30
June 2023 ,compared to 62.55% as of 30 June 2022 .
Full year results analysis.
Net sales (including other operating income) of Shree Cement has increased
18.94% to Rs 17852.33 crore.
Operating profit margin has declined
from 24.70% to 16.58%, leading to 20.18% decline in operating profit to Rs
2,959.50 crore. Raw material cost as a % of total sales (net of
stock adjustments) increased from 7.44% to 7.91%. Purchase of
finished goods cost fell from 0.58% to 0.50%. Employee cost
decreased from 6.01% to 5.45%. Other expenses rose from 61.56% to
69.63%. Power and Oil fuel cost rose from 23.83% to 33.92%.
Freight charges fell from 21.72% to 21.10%.
Other income fell 15.90% to Rs
459.08 crore. PBIDT fell 19.64% to Rs 3418.58
crore. Provision for interest rose 21.63% to Rs 262.87
crore. Loan funds rose to Rs 2,724.67 crore as of 31 March 2023 from
Rs 2,129.22 crore as of 31 March 2022. Inventories rose to Rs
2,759.68 crore as of 31 March 2023 from Rs 2,497.02 crore as of 31 March
2022. Sundry debtors were higher at Rs 1,211.57 crore as of 31 March
2023 compared to Rs 788.29 crore as of 31 March 2022. Cash and bank
balance declined from Rs 289.65 crore as of 31 March 2022 to Rs 160.93 crore as
of 31 March 2023. Investments declined from Rs 9,032.64 crore as of
31 March 2022 to Rs 8,683.14 crore as of 31 March 2023.
PBDT fell 21.84% to Rs 3155.71
crore. Provision for depreciation rose 44.93% to Rs 1660.67
crore. Fixed assets increased to Rs 10,202.81 crore as of 31 March
2023 from Rs 8,278.51 crore as of 31 March 2022. Intangible assets
increased from Rs 57.25 crore to Rs 74.67 crore.
Profit before tax down 48.30% to Rs
1,495.04 crore. Share of profit/loss were nil in both the
periods. Provision for tax was expense of Rs 225.9 crore, compared
to Rs 555.21 crore. Effective tax rate was 15.11% compared to
19.20%.
Net profit attributable to owners of
the company decreased 45.51% to Rs 1,270.70 crore.
Equity capital stood at Rs 36.08
crore as of 31 March 2023 to Rs 36.08 crore as of 31 March 2022. Per
share face Value remained same at Rs 10.00.
Promoters’ stake was 62.55% as of 31
March 2023 ,compared to 62.55% as of 31 March 2022 .
Cash flow from operating activities
decreased to Rs 2,568.74 crore for year ended March 2023 from Rs 2,667.88 crore
for year ended March 2022. Cash flow used in acquiring fixed assets
during the year ended March 2023 stood at Rs 3,314.45 crore, compared to Rs
2,218.22 crore during the year ended March 2022.
Operation highlights
Volume growth stood at
19% YoY.
Expansion:
The
Company has started 12 million tons cement capacity expansion projects in
Rajasthan, Uttar Pradesh and Karnataka at a total investment of Rs 7,000 crore.
During
the Quarter ended June 30, 2023, Shree Cement East Pvt. Ltd . (Wholly Owned
Subsidiary of the Company) has commenced trial production at its clinker Grinding
Unit at Village Digha & Parbatpur, in Purulia district of West Bengal with
Cement capacity of 3.0 MTPA on June 29, 2023
The company makes strategic
diversification to Ready Mix Concrete, Starting with plan to set up 5 ready mix
units by this year.
Management
Commentary:
Commenting
on the performance during the quarter, Mr. Neeraj Akhoury, Managing Director,
Shree Cement Ltd. said, Shree Cement’s quarter performance confirms that our
strategic intents are starting to deliver results. Our bold actions to grow
ahead of the industry with a focus on organic growth, sharpening operational
efficiencies & improve special product sales will continue to be executed
in the coming years. Shree has embarked on an ambitious journey to push the
limits of its performance. We are also determined to bring world class
technology enablers, especially digital tools, to create robust route to
markets and plant operations. Shree leads on green power share and we will
continue
to
examine every step to make Shree the greenest cement company. We have started
the trial commissioning of our new unit at Purulia, West Bengal and are
confident to commence operations of new plants at Nawalgarh in Rajasthan
and
Guntur in Andhra Pradesh within scheduled timelines. We are also happy to
announce our next phase of capacity expansion projects of 12 million tonnes
that will take the group’s cement capacity to 72.4 million tonnes.”
He
added that “The current macro-economic environment in the country combined with
Government focus is supporting growth for the cement sector. Accordingly, we
are accelerating our growth plans to ensure that we seize the opportunity to
the maximum. We have set an ambitious goal of taking our capacity beyond 80
million tons in the coming years and are aggressively charting out action plans
to implement the same.”
| Shree Cement : Consolidated Results | | | Quarter ended | Year ended |
|---|
| Particulars | 202306 | 202206 | Var.(%) | 202303 | 202203 | Var.(%) |
|---|
| Net Sales (including other operating income) | 5,064.83 | 4,414.85 | 14.72 | 17,852.33 | 15,009.56 | 18.94 | | OPM (%) | 18.66 | 18.14 | 52 bps | 16.58 | 24.70 | -813 bps | | OP | 944.92 | 800.82 | 17.99 | 2,959.50 | 3,707.93 | -20.18 | | Other Inc. | 169.07 | -20.10 | LP | 459.08 | 545.89 | -15.90 | | PBIDT | 1,113.99 | 780.72 | 42.69 | 3,418.58 | 4,253.82 | -19.64 | | Interest | 74.31 | 55.43 | 34.06 | 262.87 | 216.12 | 21.63 | | PBDT | 1,039.68 | 725.29 | 43.35 | 3,155.71 | 4,037.70 | -21.84 | | Depreciation | 339.45 | 349.65 | -2.92 | 1660.67 | 1145.88 | 44.93 | | PBT | 700.23 | 375.64 | 86.41 | 1495.04 | 2891.82 | -48.30 | | Share of Profit/(Loss) from Associates | 0 | 0 | - | 0 | 0 | - | | PBT before EO | 700.23 | 375.64 | 86.41 | 1495.04 | 2891.82 | -48.30 | | EO Income | 0 | 0 | - | 0 | 0 | - | | PBT after EO | 700.23 | 375.64 | 86.41 | 1495.04 | 2891.82 | -48.30 | | Taxation | 128.29 | 96.78 | 32.56 | 225.9 | 555.21 | -59.31 | | PAT | 571.94 | 278.86 | 105.10 | 1269.14 | 2336.61 | -45.68 | | Minority Interest (MI) | -0.36 | -0.64 | 43.75 | -1.56 | 4.67 | LP | | Net profit | 572.3 | 279.5 | 104.76 | 1270.7 | 2331.94 | -45.51 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 572.3 | 279.5 | 104.76 | 1270.7 | 2331.94 | -45.51 | | EPS (Rs)* | 158.62 | 77.47 | 104.76 | 352.18 | 646.31 | -45.51 | | | * EPS is on current equity of Rs 36.08 crore, Face value of Rs 10, Excluding extraordinary items. | | # EPS is not annualised | | bps : Basis points | | EO : Extraordinary items | | Figures in Rs crore | | Source: Capitaline Corporate Database |
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