On consolidated basis
Quarter ended December 2023 compared
with Quarter ended December 2022.
Net sales (including other operating income) of Shree Cement has increased
21.49% to Rs 5223.18 crore.
Operating profit margin has jumped
from 16.90% to 24.20%, leading to 73.93% rise in operating profit to Rs
1,263.95 crore. Raw material cost as a % of total sales (net of
stock adjustments) decreased from 7.90% to 7.83%. Purchase of
finished goods cost fell from 0.27% to 0.11%. Employee cost
decreased from 5.65% to 5.22%. Other expenses fell from 69.62% to
62.40%. Power and Oil fuel cost fell from 33.44% to 27.14%.
Freight charges fell from 21.67% to 19.39%.
Other income fell 15.31% to Rs
147.47 crore. PBIDT rose 56.68% to Rs 1411.42
crore. Provision for interest fell 21.72% to Rs 54.92
crore.
PBDT rose 63.30% to Rs 1356.5
crore. Provision for depreciation rose 0.29% to Rs 443.86
crore.
Profit before tax grew 135.16% to Rs
912.64 crore. Share of profit/loss were nil in both the
periods. Provision for tax was expense of Rs 210.79 crore, compared
to Rs 106.27 crore. Effective tax rate was 23.10% compared to
27.38%.
Minority interest increased 83.33%
to Rs -0.04 crore. Net profit attributable to owners of the company
increased 148.84% to Rs 701.89 crore.
Promoters’ stake was 62.55% as of 31
December 2023 ,compared to 62.55% as of 31 December 2022 .
Year-to-date (YTD) results analysis.
Net sales (including other operating income) of Shree Cement has increased
18.32% to Rs 15088.17 crore.
Operating profit margin has jumped
from 16.23% to 20.51%, leading to 49.49% rise in operating profit to Rs
3,094.91 crore. Raw material cost as a % of total sales (net of
stock adjustments) increased from 7.65% to 7.79%. Purchase of
finished goods cost fell from 0.54% to 0.08%. Employee cost
decreased from 5.65% to 5.33%. Other expenses fell from 70.12% to
66.22%. Power and Oil fuel cost fell from 33.76% to 30.84%.
Freight charges fell from 21.17% to 20.35%.
Other income rose 43.12% to Rs
448.49 crore. PBIDT rose 48.65% to Rs 3543.4
crore. Provision for interest rose 2.44% to Rs 196.28
crore.
PBDT rose 52.69% to Rs 3347.12
crore. Provision for depreciation rose 0.60% to Rs 1195.01
crore.
Profit before tax grew 114.31% to Rs
2,152.11 crore. Share of profit/loss were nil in both the
periods. Provision for tax was expense of Rs 431.7 crore, compared
to Rs 260.28 crore. Effective tax rate was 20.06% compared to
25.92%.
Minority interest increased 59% to
Rs -0.41 crore. Net profit attributable to owners of the company
increased 131% to Rs 1,720.82 crore.
Promoters’ stake was 62.55% as of 31
December 2023 ,compared to 62.55% as of 31 December 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
Total sale volume increased YoY by 11% from 8.03 million
tonnes to 8.89 million tones
Capacity utilization improved from 72% to 77% on YoY basis
Sale of premium products risen to 9.5% vis-à-vis 7.2% of
total trade sales on YoY basis
CAPEX:
The
Company commenced commercial production from its integrated cement plant at
village Gothra in Nawalgarh Tehsil of Rajasthan having clinker capacity of
11500 tonnes per day (3.8 million tonnes per annum) and cement capacity at 3.5
million tonnes per annum w.e.f. 22 nd January 2024.
The work on 18 million tonnes
capacity expansion projects already announced is running as per schedule. Additionally,
the Company has decided to add one more cement mill of 3.0 million tonnes per
annum capacity at its upcoming plant at Ras in Rajasthan. On completion, our
total India cement capacity will be around 75 million tonnes.
RMC
Foray
In line with the Company’s
announcement of diversifying to Ready Mix Concrete (RMC) segment by setting up 5
RMC units by year end, the Company has started work on setting up 3 RMC plants
in the month of January- 2024 and actively working on
materializing the remaining units.
Dividend
The Board of Directors have declared
an interim dividend of Rs 50/- per share for the year 2023-24.
Management
Commentary:
Commenting
on the performance during the quarter, Mr. Neeraj Akhoury, Managing Director,
Shree Cement Ltd. Said “Shree Cement is executing a comprehensive performance
improvement plan, and we are experiencing a positive impact.
Strong volume growth along with building premium products through accelerated
channel expansion and softening of fuel prices has helped us to deliver a
robust improvement. We have embarked upon a comprehensive re-branding program
which will help us build a differentiated positioning and win consumers delight.
We have commissioned Purulia and Nawalgarh plant this year and our capacity
growth plans are on track.
We
are confident of our potential to continue demonstrating superior performance.
Our country is rapidly progressing on both housing and infrastructure, and this
will provide a solid platform for India’s cement demand growth. We are fully
prepared to complete our various projects to reach beyond 80 million tonnes
cement production capacity by year 2028”.
| Shree Cement : Consolidated Results | | | Quarter ended | Year to Date | Year ended |
|---|
| Particulars | 202312 | 202212 | Var.(%) | 202312 | 202212 | Var.(%) | 202303 | 202203 | Var.(%) |
|---|
| Net Sales (including other operating income) | 5,223.18 | 4,299.26 | 21.49 | 15,088.17 | 12,752.14 | 18.32 | 17,852.33 | 15,009.56 | 18.94 | | OPM (%) | 24.20 | 16.90 | 730 bps | 20.51 | 16.23 | 428 bps | 16.58 | 24.70 | -813 bps | | OP | 1,263.95 | 726.72 | 73.93 | 3,094.91 | 2,070.30 | 49.49 | 2,959.50 | 3,707.93 | -20.18 | | Other Inc. | 147.47 | 174.12 | -15.31 | 448.49 | 313.36 | 43.12 | 459.08 | 545.89 | -15.90 | | PBIDT | 1,411.42 | 900.84 | 56.68 | 3,543.40 | 2,383.66 | 48.65 | 3,418.58 | 4,253.82 | -19.64 | | Interest | 54.92 | 70.16 | -21.72 | 196.28 | 191.60 | 2.44 | 262.87 | 216.12 | 21.63 | | PBDT | 1,356.50 | 830.68 | 63.30 | 3,347.12 | 2,192.06 | 52.69 | 3,155.71 | 4,037.70 | -21.84 | | Depreciation | 443.86 | 442.58 | 0.29 | 1195.01 | 1187.85 | 0.60 | 1660.67 | 1145.88 | 44.93 | | PBT | 912.64 | 388.10 | 135.16 | 2152.11 | 1004.21 | 114.31 | 1495.04 | 2891.82 | -48.30 | | Share of Profit/(Loss) from Associates | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | PBT before EO | 912.64 | 388.1 | 135.16 | 2152.11 | 1004.21 | 114.31 | 1495.04 | 2891.82 | -48.30 | | EO Income | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | PBT after EO | 912.64 | 388.1 | 135.16 | 2152.11 | 1004.21 | 114.31 | 1495.04 | 2891.82 | -48.30 | | Taxation | 210.79 | 106.27 | 98.35 | 431.7 | 260.28 | 65.86 | 225.9 | 555.21 | -59.31 | | PAT | 701.85 | 281.83 | 149.03 | 1720.41 | 743.93 | 131.26 | 1269.14 | 2336.61 | -45.68 | | Minority Interest (MI) | -0.04 | -0.24 | 83.33 | -0.41 | -1 | 59.00 | -1.56 | 4.67 | LP | | Net profit | 701.89 | 282.07 | 148.84 | 1720.82 | 744.93 | 131.00 | 1270.7 | 2331.94 | -45.51 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 701.89 | 282.07 | 148.84 | 1720.82 | 744.93 | 131.00 | 1270.7 | 2331.94 | -45.51 | | EPS (Rs)* | 194.53 | 78.18 | 148.84 | 476.94 | 206.46 | 131.00 | 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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