Shree Cement Q4 Results: PAT Rises 28% YoY To Rs 526 Crore; Rs 55/sh Dividend Announced

Shree Cement on Tuesday announced its robust financial performance for the fourth quarter of the fiscal year 2023-24, with a substantial 28% year-on-year increase in its consolidated net profit to Rs 675 crore.

This impressive growth, up from Rs 526 crore reported in the corresponding quarter of the previous financial year, underscores the company's resilience and strategic initiatives in navigating market challenges.

The revenue from operations for the quarter stood at Rs 5,433 crore, marking a commendable 6.5% growth compared to the year-ago period, when it was reported at Rs 5,100 crore.

Furthermore, the company's board has recommended a final dividend of Rs 55 per equity share for the fiscal year ended March 31, 2024, rewarding its shareholders for their continued support and trust.

For the entire financial year, Shree Cement reported a consolidated profit after tax (PAT) of Rs 2396 crore, a significant surge from Rs 1,271 crore in FY23.

This growth trajectory is mirrored in the revenue figures, with the company recording Rs 20,521 crore in FY24, up from Rs 17,852 crore in the previous fiscal year.

The company's total expenses in the January-March quarter saw marginal growth of 0.42%, reaching Rs 4775.35 crore, compared to Rs 4755 crore in Q4 FY23.

Notably, the total expenses in the previous quarter were reported at Rs 4458 crore, indicating the company's effective cost management strategies.

Shree Cement's total sale volume for Q4FY24 increased by 8% year-on-year, reaching 9.53 million metric tonnes, while the annual volume witnessed a commendable 12% growth, totaling 35.5 million metric tonnes compared to the previous financial year.

Moreover, the company achieved a significant milestone in terms of earnings before interest, taxes, depreciation, and amortisation (EBITDA), with a remarkable 49% year-on-year surge from Rs 892 crore to Rs 1,327 crore in Q4 FY24. This exceptional performance reflects Shree Cement's unwavering commitment to operational excellence and efficiency.

The annual EBITDA also reached its highest-ever level of Rs 4,364 crore, underscoring the company's strong financial fundamentals.

"Our strong financial performance reflects our sharp focus on operational efficiencies while expanding our capacity through green and brownfield projects. This is complemented by our digital transformation, which is driving us forward, streamlining our operations and empowering our people with data-driven decision-making capabilities" Neeraj Akhoury, MD, Shree Cement Ltd. said, in statement.

Key Highlights:

Shree Cement significantly increased its share of green power consumption, reaching 55.9% in FY 2023-24, up from 51.1% in the previous year. This led to the avoidance of 9.4 lakh tonnes of CO2 emissions.

In Q4'FY24, the company commissioned approximately 80 MW of green power capacity at various locations, bringing its total green power generation capacity to 480.3 MW as of March 31, 2024, compared to 385.6 MW in the previous year. Plans are underway to add another 188 MW of green power capacity.

The company intensified its focus on consuming agro waste, increasing its usage from 1.19 lakh tons in FY 2022-23 to 1.24 lakh tons in FY 2023-24. This helped replace over 352 billion kCal heat from fossil fuels, with an additional procurement of 18,865 tons of stubble to mitigate stubble burning in the NCR region.

Shree Cement's use of biofuel contributed to avoiding around 1.4 lakh tons of carbon emissions during FY 2023-24, compared to 1.2 lakh tons in FY 2022-23. These sustainable initiatives underscore the company's commitment to environmental stewardship and carbon footprint reduction.

"I am happy to see the enthusiastic market response to our consolidation of all products under the master brand 'Bangur', which, along with diversifying into Ready Mix Concrete, marks a significant step in our journey towards becoming a multi-product player in the core cement business. We are today well-positioned to contribute significantly to India's vision of world-class infrastructure" Neeraj added.

The market responded positively to the earnings announcement, with Shree Cement's stock ending the day with gains of Rs 80 or 0.31% on the NSE. As the company continues to innovate and expand its footprint, investors can expect sustained value creation and growth opportunities in the future.