Shree Cement foresees 8-10% volume growth in FY 25

The Kolkata-based cement manufacturer beats Street estimates in the January-March quarter, recording volumes of 9.53 metric tonnes versus the expected 9.4 metric tonnes.

Shree Cement expects volumes to grow at 8-10% in April-March 2024-25.

The earnings before interest, tax, depreciation, and amortisation (EBITDA) was also better due to only a lower than estimated contraction in realisations, and higher operating leverage with fuel costs dropping nearly 15% from last year.
HM Bangur, Chairman, Shree Cement said the demand may be deferred due to seasonal fluctuations, but it eventually picks up.

With India’s continuous development, the need for cement and infrastructure will remain high, providing a foundation for sustained demand growth, he noted.

Shree Cement reported revenue growth of ₹5,101 crore for January-March
EBITDA margin was at 26%, better than Street estimates of 22.8%, EBITDA per tonne was ₹1,392 versus ₹1,388 in the third quarter.

Bangur refrained from giving a guidance on the EBITDA per tonne given the significant influence of fluctuating commodity prices. However, he is confident that increasing efficiency levels and reducing energy consumption costs will improve performance.
He said cements price increases have historically been slightly below general inflation rates, typically 1 to 2% less.

However, he believes that the company will maintain profitability even with modest prices increases given that the technological advancements and innovations are helping tame costs.


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