On consolidated basis
Quarter ended December 2022 compared
with Quarter ended December 2021.
Net sales (including other operating income) of Shree Cement has increased
18.21% to Rs 4299.26 crore.
Operating profit margin has declined
from 23.24% to 16.90%, leading to 14.02% decline in operating profit to Rs
726.72 crore. Raw material cost as a % of total sales (net of stock
adjustments) decreased from 8.41% to 7.90%. Purchase of finished
goods cost rose from 0.09% to 0.27%. Employee cost decreased from
6.05% to 5.65%. Other expenses rose from 62.52% to 69.62%.
Power and Oil fuel cost rose from 24.80% to 33.44%.
Freight charges rose from 21.40% to 21.67%.
Other income rose 52.94% to Rs
174.12 crore. PBIDT fell 6.07% to Rs 900.84
crore. Provision for interest rose 30.14% to Rs 70.16
crore.
PBDT fell 8.23% to Rs 830.68
crore. Provision for depreciation rose 55.13% to Rs 442.58
crore.
Profit before tax down 37.39% to Rs
388.10 crore. Share of profit/loss were nil in both the
periods. Provision for tax was expense of Rs 106.27 crore, compared
to Rs 137.14 crore. Effective tax rate was 27.38% compared to
22.13%.
Net profit attributable to owners of
the company decreased 41.48% to Rs 282.07 crore.
Promoters’ stake was 62.55% as of 31
December 2022 ,compared to 62.55% as of 31 December 2021 .
For year-to-date (YTD) results
analysis.
Net sales (including other operating income) of Shree Cement has
increased 19.79% to Rs 12752.14 crore.
Operating profit margin has declined
from 26.20% to 16.23%, leading to 25.77% decline in operating profit to Rs
2,070.30 crore. Raw material cost as a % of total sales (net of
stock adjustments) increased from 7.56% to 7.65%. Purchase of
finished goods cost fell from 0.68% to 0.54%. Employee cost
decreased from 6.37% to 5.65%. Other expenses rose from 59.71% to
70.12%. Power and Oil fuel cost rose from 21.66% to 33.76%.
Freight charges fell from 21.55% to 21.17%.
Other income fell 23.30% to Rs
313.36 crore. PBIDT fell 25.46% to Rs 2383.66
crore. Provision for interest rose 16.86% to Rs 191.6
crore.
PBDT fell 27.74% to Rs 2192.06 crore. Provision
for depreciation rose 39.89% to Rs 1187.85 crore.
Profit before tax down 54.03% to Rs
1,004.21 crore. Share of profit/loss were nil in both the
periods. Provision for tax was expense of Rs 260.28 crore, compared
to Rs 507.02 crore. Effective tax rate was 25.92% compared to
23.21%.
Net profit attributable to owners of
the company decreased 55.52% to Rs 744.93 crore.
Promoters’ stake was 62.55% as of 31
December 2022 ,compared to 62.55% as of 31 December 2021 .
Full year results analysis.
Net sales (including other operating income) of Shree Cement has increased
10.69% to Rs 15009.56 crore.
Operating profit margin has declined
from 30.08% to 24.70%, leading to 9.11% decline in operating profit to Rs
3,707.93 crore. Raw material cost as a % of total sales (net of
stock adjustments) increased from 7.23% to 7.44%. Purchase of
finished goods cost rose from 0.32% to 0.58%. Employee cost
decreased from 6.43% to 6.01%. Other expenses rose from 55.82% to
61.56%. Power and Oil fuel cost rose from 17.75% to 23.83%.
Freight charges fell from 23.02% to 21.72%.
Other income rose 24.56% to Rs
545.89 crore. PBIDT fell 5.84% to Rs 4253.82
crore. Provision for interest fell 14% to Rs 216.12
crore. Loan funds declined from Rs 2,229.88 crore as of 31 March
2021 to Rs 2,129.22 crore as of 31 March 2022. Inventories rose to
Rs 2,497.02 crore as of 31 March 2022 from Rs 1,715.72 crore as of 31 March
2021. Sundry debtors were higher at Rs 788.29 crore as of 31 March 2022
compared to Rs 679.43 crore as of 31 March 2021. Cash and bank
balance declined from Rs 708.35 crore as of 31 March 2021 to Rs 289.65 crore as
of 31 March 2022. Investments rose to Rs 9,032.64 crore as of 31
March 2022 from Rs 8,500.50 crore as of 31 March 2021 .
PBDT fell 5.36% to Rs 4037.7
crore. Provision for depreciation fell 9.23% to Rs 1145.88
crore. Fixed assets increased to Rs 8,278.51 crore as of 31 March
2022 from Rs 7,152.54 crore as of 31 March 2021. Intangible assets
declined from Rs 60.25 crore to Rs 57.25 crore.
Profit before tax down 3.74% to Rs
2,891.82 crore. Share of profit/loss were nil in both the
periods. Provision for tax was expense of Rs 555.21 crore, compared
to Rs 714.49 crore. Effective tax rate was 19.20% compared to
23.78%.
Minority interest increased 25.54%
to Rs 4.67 crore. Net profit attributable to owners of the company
increased 2.02% to Rs 2,331.94 crore.
Equity capital stood at Rs 36.08
crore as of 31 March 2022 to Rs 36.08 crore as of 31 March 2021. Per
share face Value remained same at Rs 10.00.
Promoters’ stake was 62.55% as of 31
March 2022 ,compared to 62.55% as of 31 March 2021 .
Cash flow from operating activities
decreased to Rs 2,667.88 crore for year ended March 2022 from Rs 4,253.79 crore
for year ended March 2021. Cash flow used in acquiring fixed assets
during the year ended March 2022 stood at Rs 2,218.22 crore, compared to Rs
1,134.61 crore during the year ended March 2021.
Dividend
Board
of Directors of the Company has declared an interim dividend of Rs 45 per share
(450%) for the year 2022-23. In previous year 2021-22, the Board declared
interim dividend of Rs 45 per share. Total dividend for year 2021-
22 was
Rs 90/- per share.
CAPEX:
The
Company has been actively working on achieving its goal of having 80 million
tonnes capacity by year 2030. On this front, status of projects under
implementation is as below:
Work
on setting up of clinker grinding unit of 3.0 million tonnes capacity at
Purulia, West Bengal (through wholly owned subsidiary) is nearing completion.
Considering the progress of the project, the targeted completion is expected
within Q1 of FY 2023-24.
Work
on setting-up of integrated cement unit of upto 3.50 million tonnes capacity at
Nawalgarh, Rajasthan is on full swing and progressing well. The said project is
likely to be completed by Q3 of FY 2023-24, one quarter ahead of earlier
scheduled completion of Q4 of FY 2023-24.
Work
on setting- up of integrated cement unit of 3.0 million tonnes capacity in
Guntur district of Andhra Pradesh has also picked up pace. In view of the same,
we expect completion of the project advanced by one quarter to Q2 of FY
2024-25.
Management Commentary:
Commenting
on the performance during the quarter, Mr. Neeraj Akhoury, Managing Director,
Shree Cement Ltd. 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 Rs 10
lakh crore and cement demand, being linked with capex activities, would surely
get a big boost from the same. Shree Cement is perfectly
positioned
to perform in these exciting times. We will continue to build new plants to
meet the growing cement demand in India.”
He
added that “The Company has launched WeLead initiative to strengthen its core
capabilities in high impact areas of production, sales & marketing,
distribution and build business models and systems to become more
productive
& performance focused. The performance during the quarter gone by is
testimony to such initiatives and we expect to derive significant synergies from
the above initiatives.”
| Shree Cement : Consolidated Results | | | Quarter ended | Year to Date | Year ended |
|---|
| Particulars | 202212 | 202112 | Var.(%) | 202212 | 202112 | Var.(%) | 202203 | 202103 | Var.(%) |
|---|
| Net Sales (including other operating income) | 4,299.26 | 3,637.11 | 18.21 | 12,752.14 | 10,645.32 | 19.79 | 15,009.56 | 13,559.77 | 10.69 | | OPM (%) | 16.90 | 23.24 | -633 bps | 16.23 | 26.20 | -997 bps | 24.70 | 30.08 | -538 bps | | OP | 726.72 | 845.20 | -14.02 | 2,070.30 | 2,789.12 | -25.77 | 3,707.93 | 4,079.45 | -9.11 | | Other Inc. | 174.12 | 113.85 | 52.94 | 313.36 | 408.53 | -23.30 | 545.89 | 438.26 | 24.56 | | PBIDT | 900.84 | 959.05 | -6.07 | 2,383.66 | 3,197.65 | -25.46 | 4,253.82 | 4,517.71 | -5.84 | | Interest | 70.16 | 53.91 | 30.14 | 191.60 | 163.95 | 16.86 | 216.12 | 251.29 | -14.00 | | PBDT | 830.68 | 905.14 | -8.23 | 2,192.06 | 3,033.70 | -27.74 | 4,037.70 | 4,266.42 | -5.36 | | Depreciation | 442.58 | 285.3 | 55.13 | 1187.85 | 849.15 | 39.89 | 1145.88 | 1262.34 | -9.23 | | PBT | 388.10 | 619.84 | -37.39 | 1004.21 | 2184.55 | -54.03 | 2891.82 | 3004.08 | -3.74 | | Share of Profit/(Loss) from Associates | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | PBT before EO | 388.1 | 619.84 | -37.39 | 1004.21 | 2184.55 | -54.03 | 2891.82 | 3004.08 | -3.74 | | EO Income | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | PBT after EO | 388.1 | 619.84 | -37.39 | 1004.21 | 2184.55 | -54.03 | 2891.82 | 3004.08 | -3.74 | | Taxation | 106.27 | 137.14 | -22.51 | 260.28 | 507.02 | -48.66 | 555.21 | 714.49 | -22.29 | | PAT | 281.83 | 482.7 | -41.61 | 743.93 | 1677.53 | -55.65 | 2336.61 | 2289.59 | 2.05 | | Minority Interest (MI) | -0.24 | 0.73 | LP | -1 | 2.83 | LP | 4.67 | 3.72 | 25.54 | | Net profit | 282.07 | 481.97 | -41.48 | 744.93 | 1674.7 | -55.52 | 2331.94 | 2285.87 | 2.02 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 282.07 | 481.97 | -41.48 | 744.93 | 1674.7 | -55.52 | 2331.94 | 2285.87 | 2.02 | | EPS (Rs)* | 78.18 | 133.58 | -41.48 | 206.46 | 464.15 | -55.52 | 646.31 | 633.54 | 2.02 | | | * 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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