Shree Cement reports 15% fall in Q4 profit on rise in input costs – ET Infra

BENGALURU: Shree Cement Ltd, India’s second-biggest cement company by market capitalisation, reported a 15.3% fall in fourth-quarter profit on Monday as higher input costs outpaced growth in revenue.

The company reported a profit of 5.46 billion Indian rupees ($66.76 million) for the quarter ended March 31, compared to 6.45 billion rupees a year earlier.

Its earnings before interest, depreciation, taxes and amortisation margins fell 2% as cement prices stayed flat and expenses rose, according to analysts.

The company’s total expenses rose 24.4%, with cost of materials consumed and power and fuel costs nearly doubling.

Gross revenue from operations rose 16.8% to 59.98 billion rupees.

A note from India Ratings and Research added that the brokerage expected only a single-digit rise in cement prices in fiscal 2024.

Both UltraTech and ACC reported a drop in their fourth-quarter profit on the back of increased costs, while Ambuja Cements reported rise in profit on higher earnings.

Shree Cement’s shares closed 0.25% higher at 24,468.65 rupees ahead of the results. The company also declared a second interim dividend of 55 rupees per share for the year 2022-23.

  • Published On May 23, 2023 at 03:04 PM IST

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