Profit before tax was at Rs 44.76 crore in second quarter of FY25, down 92.5% from Rs 596.52 crore reported in same quarter previous fiscal.

EBIDTA de-grew 32% to Rs 593 crore in September 2024 quarter as against Rs 870 crore recorded in the corresponding quarter last year.

Total sales volume shed by 7% YoY to 7.60 million tonnes in the quarter ended 30 September 2024.

The company said that the sale of premium products stood at 15% of total trade sale volume.

The cement manufacturing company stated that despite the challenging demand conditions on account of prolonged monsoon and softer prices faced by the industry, the company’s focus on maintaining brand equity, product premiumization and improving geo-mix helped maintain its realisation on QoQ basis. This coupled with cost optimization and operational efficiency measures drove EBITDA during the quarter.

Explaining its capex plans, the company stated that its ongoing expansion projects in Jaitaran, Rajasthan (6.0 MTPA), Kodla, Karnataka (3 MTPA), Baloda Bazar, Chhattisgarh (3.40 MTPA), and Etah, Uttar Pradesh (3 MTPA) are progressing satisfactorily. The cement maker expects to commission all these projects by the first quarter of FY25-26. It is continuously working to identify suitable opportunities to achieve its goal of achieving > 80 MTPA capacity by 2028.

On the outlook front, the firm stated, “Intense and prolonged monsoon conditions during Q2FY25 have impacted construction activities across the sectors leading to subdued cement demand. In the second half of FY24-25, an uptick in demand is expected on account of the release of budgetary allocations and on-ground execution of the infra projects. Further, higher rural demand is expected on the back of good kharif crop and improved farm prices. Spending under additional houses in PMAY scheme (rural and urban) and increase in industrial & commercial capex is also expected to drive cement demand in the near future.”

Neeraj Akhoury, managing director of Shree Cement, said, “Despite strong headwinds on account of extended monsoon and softer pricing environment across the industry, Shree Cement has delivered a steady performance on the back of accelerated operational efficiency measures, focused cost optimisation drive and product premiumisation initiatives.”

He added, “The company expects gradual improvement in demand driven by increased government spending in the second half of the financial year and improved demand from urban and rural segments owing to good monsoon. Shree Cement remains focused on its long-term growth and sustainability, with ongoing investments in capacity expansion and the adoption of greener technologies.”

Shree Cement is one of India's top three cement producers. Its portfolio of products includes Shree Jung Rodhak Cement, Bangur Cement, Roofon and Rockstrong Cement.

Shares of Shree Cement hit a 52-week low at Rs 23,500.15 in today’s intraday session.