Shree Cement , one of India's leading cement manufacturers, has announced a strategic revision to its capacity expansion plans along with its Q2 financial results, showcasing the company's adaptability to market conditions and its continued financial strength.

Revised Expansion Strategy

Shree Cement has pushed back its ambitious target of achieving 80 million tonnes capacity to FY29, adapting to current market dynamics. The company now aims for a more measured growth:

• Projected cement sales of 37-38 million tonnes
• Targeted capacity of 72-75 million tonnes by FY27
• Revised timeline for reaching 80 million tonnes capacity by FY29

This adjusted timeline reflects a pragmatic approach to growth in response to market conditions. Additionally, the company plans to establish 40 Ready Mix Concrete (RMC) plants by FY28, diversifying its product offerings.

Financial Highlights for Q2

Shree Cement's Q2 results demonstrate strong performance across key metrics:

The company's financial robustness is evident from these figures, with significant year-on-year growth across all major financial indicators.

Operational Performance

• Total cement sales volume increased by 6.8% year-on-year
• Premium products now constitute 21.1% of total trade volume, up from 14.9% in the corresponding previous quarter

Capital Expenditure and Dividend

• Estimated capital expenditure of ₹3,000 crores for FY27
• The Board of Directors has declared an interim dividend of ₹80 per equity share

Strategic Asset Management

During Q2, Shree Cement transferred certain power transmission assets to the Government Transmission Corporation, resulting in a one-time charge of ₹23.68 crore to the Statement of Profit and Loss under "Other Expenses".

Market Outlook

The company remains optimistic about future demand, citing factors such as:

• Above-normal monsoon and healthy progress in kharif sowing
• Adequate reservoir levels
• Steady employment conditions
• Benign inflation
• Recent rationalization of GST rates

These factors are expected to stimulate infrastructure development and growth in the housing sector, potentially boosting cement demand in the near term.

Shree Cement's revised expansion strategy and strong financial performance demonstrate its ability to navigate market challenges while maintaining robust growth. The company's focus on operational efficiency, premium product sales, and strategic investments positions it well for sustainable long-term growth in India's dynamic cement market.

Shree Cement Limited , one of India's leading cement manufacturers, reported a significant surge in its financial performance for the second quarter. The company's net profit nearly tripled to ₹277.00 crore, up from ₹93.00 crore in the same period last year, showcasing robust growth despite falling short of analyst estimates of ₹349.00 crore.

Revenue and Operational Performance

The company's revenue from operations grew by 15.5% year-on-year to ₹4,303.00 crore, compared to ₹3,727.00 crore in the corresponding quarter of the previous year. This growth was primarily driven by higher volumes and an increased focus on premium products.

Profitability and Margins

Shree Cement's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a substantial increase of 43.5% to ₹851.80 crore. The operating margin improved to 19.8% from 15.9% in the same quarter last year, indicating enhanced operational efficiency.

Premium Product Strategy

The company's strategy to focus on premium products has shown positive results. Premium products now account for 21.1% of total trade volume, a significant increase from 14.9% in the previous comparable period.

UAE Operations

Shree Cement's operations in the United Arab Emirates demonstrated strong performance, with revenue growing by 50% to AED 231.80 million.

Capacity Expansion and Sustainability Initiatives

During the quarter, Shree Cement commissioned a 3.65 MTPA clinkerisation line in Rajasthan, enhancing its production capabilities. The company also added 20 MW of solar capacity, bringing its total green power generation to 612.5 MW. Notably, green electricity now comprises 63.15% of the company's total consumption, underlining its commitment to sustainable operations.

Financial Position

As of September 30, Shree Cement's balance sheet remains robust with a net worth of ₹21,928.31 crore. The company maintains a healthy current ratio of 1.88, indicating strong liquidity.

Dividend Declaration

The Board of Directors has declared an interim dividend of ₹80.00 per equity share, payable to shareholders on the record date of November 3.

Market Response

Despite the quarterly performance, Shree Cement's shares closed down 0.23% at ₹28,534.50 on the day of the results announcement.