On consolidated basis
Quarter ended March 2024 compared
with Quarter ended March 2023.
Net sales (including other operating income) of Shree Cement has increased
6.52% to Rs 5432.81 crore.
Operating profit margin has jumped
from 17.43% to 26.17%, leading to 59.90% rise in operating profit to Rs
1,421.83 crore. Raw material cost as a % of total sales (net of
stock adjustments) decreased from 8.56% to 8.50%. Purchase of
finished goods cost fell from 0.40% to 0.01%. Employee cost
decreased from 4.95% to 4.72%. Other expenses fell from 68.37% to
61.24%. Power and Oil fuel cost fell from 34.32% to 29.30%.
Freight charges fell from 20.93% to 19.58%.
Other income rose 2.68% to Rs 149.63
crore. PBIDT rose 51.84% to Rs 1571.46 crore. Provision
for interest fell 12.92% to Rs 62.06 crore. Loan funds declined from
Rs 2,724.67 crore as of 31 March 2023 to Rs 1,655.55 crore as of 31 March
2024. Inventories rose to Rs 3,555.07 crore as of 31 March 2024 from
Rs 2,759.68 crore as of 31 March 2023. Sundry debtors were higher at
Rs 1,286.53 crore as of 31 March 2024 compared to Rs 1,211.57 crore as of 31
March 2023. Cash and bank balance rose to Rs 421.81 crore as of 31
March 2024 from Rs 160.93 crore as of 31 March 2023. Investments
declined from Rs 8,683.14 crore as of 31 March 2023 to Rs 7,555.83 crore as of
31 March 2024.
PBDT rose 56.63% to Rs 1509.4
crore. Provision for depreciation rose 48.54% to Rs 702.31
crore. Fixed assets increased to Rs 11,397.13 crore as of 31 March
2024 from Rs 10,202.81 crore as of 31 March 2023. Intangible assets
increased from Rs 74.67 crore to Rs 123.45 crore.
Profit before tax grew 64.43% to Rs
807.09 crore. Share of profit/loss were nil in both the
periods. Provision for tax was debit of Rs 131.34 crore, compared to
credit of Rs 34.38 crore. Effective tax rate was 16.27% compared to
negative 7.00%.
Net profit attributable to owners of
the company increased 28.36% to Rs 674.88 crore.
Equity capital stood at Rs 36.08
crore as of 31 March 2024 to Rs 36.08 crore as of 31 March 2023. Per
share face Value remained same at Rs 10.00.
Promoters’ stake was 62.55% as of 31
March 2024 ,compared to 62.55% as of 31 March 2023 .
Full year results analysis.
Net sales (including other operating income) of Shree Cement has increased
14.95% to Rs 20520.98 crore.
Operating profit margin has jumped
from 16.58% to 22.01%, leading to 52.62% rise in operating profit to Rs
4,516.74 crore. Raw material cost as a % of total sales (net of
stock adjustments) increased from 7.91% to 7.99%. Purchase of
finished goods cost fell from 0.50% to 0.05%. Employee cost decreased
from 5.45% to 5.16%. Other expenses fell from 69.63% to 64.88%.
Power and Oil fuel cost fell from 33.92% to 30.79%.
Freight charges fell from 21.10% to 20.14%.
Other income rose 30.29% to Rs
598.12 crore. PBIDT rose 49.62% to Rs 5114.86 crore. Provision
for interest fell 1.72% to Rs 258.34 crore. Loan funds declined from
Rs 2,724.67 crore as of 31 March 2023 to Rs 1,655.55 crore as of 31 March
2024. Inventories rose to Rs 3,555.07 crore as of 31 March 2024 from
Rs 2,759.68 crore as of 31 March 2023. Sundry debtors were higher at
Rs 1,286.53 crore as of 31 March 2024 compared to Rs 1,211.57 crore as of 31
March 2023. Cash and bank balance rose to Rs 421.81 crore as of 31
March 2024 from Rs 160.93 crore as of 31 March 2023. Investments declined
from Rs 8,683.14 crore as of 31 March 2023 to Rs 7,555.83 crore as of 31 March
2024.
PBDT rose 53.90% to Rs 4856.52
crore. Provision for depreciation rose 14.25% to Rs 1897.32
crore. Fixed assets increased to Rs 11,397.13 crore as of 31 March 2024
from Rs 10,202.81 crore as of 31 March 2023. Intangible assets
increased from Rs 74.67 crore to Rs 123.45 crore.
Profit before tax grew 97.93% to Rs
2,959.20 crore. Share of profit/loss were nil in both the
periods. Provision for tax was expense of Rs 563.04 crore, compared
to Rs 225.9 crore. Effective tax rate was 19.03% compared to 15.11%.
Net profit attributable to owners of
the company increased 88.53% to Rs 2,395.70 crore.
Equity capital stood at Rs 36.08
crore as of 31 March 2024 to Rs 36.08 crore as of 31 March 2023. Per
share face Value remained same at Rs 10.00.
Promoters’ stake was 62.55% as of 31
March 2024 ,compared to 62.55% as of 31 March 2023 .
Cash flow from operating activities
increased to Rs 3,347.49 crore for year ended March 2024 from Rs 2,568.74 crore
for year ended March 2023. Cash flow used in acquiring fixed assets
during the year ended March 2024 stood at Rs 3,200.35 crore, compared to Rs
3,314.45 crore during the year ended March 2023.
Operation highlights
Total sale volume increased YoY by 8% from 8.83 million
tonnes to 9.53 million tones in Q4FY2024, annual volume at 35.5 million tonnes
with 12% growth
CAPEX:
On
2 nd April, 2024, the Company commissioned its Integrated Cement Plant in
Guntur district of Andhra Pradesh with cement capacity at 3.0 million tonnes
per annum.
The work on other 18 million tonnes
capacity expansion projects already announced is progressing as per schedule.
Upon completion, total cement production capacity of Company in India will
reach to 74.80 million tonnes.
The company plans to invest Rs 4500
crore towards capacity expansion in
FY2025.
RMC
Foray
During the quarter, the Company made
its foray into Ready Mix Concrete (RMC) Business. It entered into an Asset Purchase
Agreement with StarCrete LLP to purchase 5 RMC Plants in Mumbai Metropolitan
Region of Maharashtra at aggregate consideration of Rs 33.50 crore.
Additionally, the Company also commissioned its first greenfield RMC facility
of 90 cubic meters per hour capacity in Hyderabad, Telangana under brand Bangur
Concrete. The Company has plans to setup 100 Bangur Concrete plants in next 3
years, operating in 50 cities and generating 3000 direct and indirect
employment opportunities.
Dividend
The Board of Directors of the Company has recommended a
final dividend of ? 55 per share (550%) for the year 2023-24 subject to
approval of members in the next Annual General Meeting. This is in addition to
the interim dividend of ? 50 per share (500%) declared by the Board of
Directors on 31st January, 2024
Management
Commentary:
Commenting
on the performance during the quarter, Mr. Neeraj Akhoury, Managing Director,
Shree Cement Ltd. Said “Our strong financial performance reflects our sharp
focus on operational efficiencies while expanding our capacity through green
and brownfield projects. This is complemented by our digital transformation,
which is driving us forward, streamlining our operations and empowering our
people with data-driven decision-making capabilities.”
He
added, “I am happy to see the enthusiastic market response to our consolidation
of all products under the master brand ‘Bangur’, which, along with diversifying
into Ready Mix Concrete, marks a significant step in our
journey
towards becoming a multi-product player in the core cement business. We are
today well-positioned to contribute significantly to India’s vision of
world-class infrastructure.”
| Shree Cement : Consolidated Results | | | Quarter ended | Year ended |
|---|
| Particulars | 202403 | 202303 | Var.(%) | 202403 | 202303 | Var.(%) |
|---|
| Net Sales (including other operating income) | 5,432.81 | 5,100.19 | 6.52 | 20,520.98 | 17,852.33 | 14.95 | | OPM (%) | 26.17 | 17.43 | 874 bps | 22.01 | 16.58 | 543 bps | | OP | 1,421.83 | 889.20 | 59.90 | 4,516.74 | 2,959.50 | 52.62 | | Other Inc. | 149.63 | 145.72 | 2.68 | 598.12 | 459.08 | 30.29 | | PBIDT | 1,571.46 | 1,034.92 | 51.84 | 5,114.86 | 3,418.58 | 49.62 | | Interest | 62.06 | 71.27 | -12.92 | 258.34 | 262.87 | -1.72 | | PBDT | 1,509.40 | 963.65 | 56.63 | 4,856.52 | 3,155.71 | 53.90 | | Depreciation | 702.31 | 472.82 | 48.54 | 1897.32 | 1660.67 | 14.25 | | PBT | 807.09 | 490.83 | 64.43 | 2959.2 | 1495.04 | 97.93 | | Share of Profit/(Loss) from Associates | 0 | 0 | - | 0 | 0 | - | | PBT before EO | 807.09 | 490.83 | 64.43 | 2959.2 | 1495.04 | 97.93 | | EO Income | 0 | 0 | - | 0 | 0 | - | | PBT after EO | 807.09 | 490.83 | 64.43 | 2959.2 | 1495.04 | 97.93 | | Taxation | 131.34 | -34.38 | PL | 563.04 | 225.9 | 149.24 | | PAT | 675.75 | 525.21 | 28.66 | 2396.16 | 1269.14 | 88.80 | | Minority Interest (MI) | 0.87 | -0.56 | PL | 0.46 | -1.56 | PL | | Net profit | 674.88 | 525.77 | 28.36 | 2395.7 | 1270.7 | 88.53 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 674.88 | 525.77 | 28.36 | 2395.7 | 1270.7 | 88.53 | | EPS (Rs)* | 187.05 | 136.18 | 37.35 | 663.98 | 352.18 | 88.53 | | | * 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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