Shree Cement (SHREECEM) Q2 24/25 earnings summary

Executive summary

• Faced a challenging demand environment in Q2 FY25 due to delayed government spending and prolonged monsoon, leading to subdued cement demand and a 7% year-on-year volume decline.

• Unaudited standalone and consolidated financial results for the quarter and half year ended 30th September 2024 were approved on 11th November 2024.

• Statutory auditors conducted a limited review and found no material misstatements in the financial statements.

• Adopted a value-over-volume strategy, focusing on premium products, which reached 15% of trade segment sales.

• Maintained cement realization at INR 4,447 per ton, nearly flat sequentially, outperforming industry average price declines.

Financial highlights

• Cement realization was INR 4,447 per ton in Q2 FY25, compared to INR 4,464 in Q1 FY25.

• Standalone revenue from operations for Q2 FY25 was ₹3,727 crore, up from ₹3,559.95 crore in Q2 FY24; consolidated revenue was ₹4,054.17 crore, up from ₹4,773.67 crore in Q2 FY24.

• Standalone net profit for Q2 FY25 was ₹93.13 crore, down from ₹317.71 crore in Q1 FY25 and ₹491.33 crore in Q2 FY24; consolidated net profit was ₹76.64 crore, down from ₹278.45 crore in Q1 FY25 and ₹446.62 crore in Q2 FY24.

• EBITDA per ton reached INR 780, the highest among peers.

• Total cost (excluding depreciation and interest) reduced by 8% year-on-year to INR 4,122 per ton.

Outlook and guidance

• Management expects demand to improve in the next six months, driven by government spending and festive season.

• Anticipates a better pricing environment if demand recovers as expected.

• Premium product share to stabilize at 15% in the coming quarters.

• Capacity expansion projects expected to be commissioned between April and June 2025.

• The company continues to focus on cement and related products, with no separate reportable segments.