Shree Cement Q1 Results

Profit drops by 52% & despite 22% growth in revenues

According to a BSE filing by Shree Cement, the business reported a net profit of Rs 630.89 crore during April to June of last year.

YoY growth was assisted by increased volumes and stronger realisations throughout the quarter, but the increase in power and fuel prices had an effect on profitability and margins.

On July 28, Shree Cement Limited reported a 52 percent drop in standalone net profit to Rs 316 crore for the first quarter of FY22-23 from Rs 662 crore in the same period last year.

Sequentially, the profit has decreased by 51% from Rs 645 crore generated between January and March.

The main cement manufacturer in Rajasthan saw a 21.8 percent year-over-year increase in standalone sales, from Rs 3,449 crore in the prior quarter to Rs 4,203 crore this quarter.

In comparison to the sales of Rs 4,099 crore reported in the preceding quarter, the revenue is just 2.5% higher sequentially.

Higher volumes and stronger realisations during the quarter helped the on-year rise, but the surge in power and fuel prices had an effect on profitability and margins.

On both a YoY and a sequential basis, the cost of raw materials as a proportion of revenue increased by 50 bps.

Due to rising oil and coal prices, the cost of electricity and fuel for the quarter increased by 15.4 percent year over year and 8.1 percent sequentially.

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