Shree Cement Limited (“SCL”), started its journey of sustainability reporting back in FY 2004-05 as the first organization in the Indian cement industry. Shree Cement has a consolidated Cement Production Capacity of 47.4 Million tonnes per annum (including overseas) and a Power Generation Capacity of 752 Megawatts. The company’s operations span across India and the UAE with 4 integrated plants in India, 1 in UAE, and 9 Grinding Units spanning across 10 states of Bihar, Chhattisgarh, Haryana, Jharkhand, Karnataka, Maharashtra, Odisha, Rajasthan, Uttar Pradesh, and Uttarakhand.

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    Stock Details
    Market Cap. (Cr.) 87466
    Equity (Cr.) 36.08
    Face Value 10
    52 Wk. high/low 26333 / 17900
    BSE Code 500387
    Book Value (Rs.) 4977.95
    Sector Cements
    Key Ratios
    Debt-equity: 0.13
    ROCE (%): 16.54
    ROE (%): 14.22
    TTM EPS: 388.62
    P/BV: 4.9
    TTM P/E: 62.38


    Result Highlights:

    • Revenue of Shree Cement has grown on both QoQ and YoY basis by 6.47%, and 18.21% respectively to Rs.4,299.26 cr. in Q3FY23. Company has clocked PAT of Rs.281.83 the Dec. quarter, growth of 53.80% QoQ and de-growth of 41.61% YoY.
    • EBITDA margin of the company has increased sequentially by 356bps and showed a decline of 542bps on YoY basis to 20.95%.
    • Total volume of the company increased YoY by 23% and QoQ by 8% to 8.03 million tonnes.
    • The share of green power consumption of the company’s total power consumption stood at 53% against 47% in the corresponding quarter of the previous year. Whereas, fossil fuel substitution was 3.91% against 3.38% in the corresponding quarter of the previous year.
    • The Company has been actively working on achieving its goal of having 80 million tonnes capacity by year 2030.
    • Work on setting up of clinker grinding unit of 3.0 million tonnes capacity at Purulia, West Bengal, and integrated cement unit of upto 3.50 million tonnes, and 3.0 million tonnes capacity at Nawalgarh, Rajasthan, and Guntur district of Andhra Pradesh respectively are on full swing and progressing well.
    • Board of Directors of the Company has declared an interim dividend of ₹ 45 per share for the year 2022- 23


    Financial Performance:


    Shareholding Pattern:



    Managerial commentary:

    Neeraj Akhoury, Managing Director, Shree Cement Ltd. said, “Shree Cement continues its strong focus on operational efficiencies to mitigate increase in the input costs including fuel. We are determined to become the greenest cement company with global scale performance on power mix. In the quarter gone by, there has been a strong momentum in cement demand due to rise in construction activities. In the Union Budget 2023-24, capital investments has been given a major fillip by providing ever highest allocation of ₹10 lakh crore and cement demand, being linked with capex activities, would surely get a big boost from the same. Shree Cement is perfectly positioned to perform in these exciting times. We will continue to build new plants to meet the growing cement demand in India.”


    Shree Cement reported in-line revenue growth of 18.88% YoY on account of robust volume growth of 23% YoY. However, the company was not able to perform on the PAT front due to increased costs. Given the government’s focus on infrastructure growth in the Union Budget 2023-24 through higher allocation for road construction projects, Pradhan Mantri Awas Yojana (PMAY), highest ever capital investment outlay, and other overall buoyancy in the economy, cement sector is poised for robust growth in coming years. However, rising input costs led by higher fuel prices may impact the margins. For the 9MFY23 Shree Cement has reported the earnings of Rs.206.46 and we expect the company to close the FY23 at the eEPS of Rs.275.28. Based on the estimated earnings the company is available at PEx of 88.06 at the CMP.


    Particulars (In Rs. Cr.) Q3FY23 Q2FY23 Q3FY22 QoQ% YoY% 9MFY23 9MFY22 YoY%
    Revenue from Operations 4,299.26 4,038.03 3,637.11 6.47% 18.21% 12,752.14 10,645.32 19.79%
    Other Income 174.12 159.34 113.85 9.28% 52.94% 313.36 408.53 -23.30%
    Total Income 4,473.38 4,197.37 3,750.96 6.58% 19.26% 13,065.50 11,053.85 18.20%
    Cost of Materials Consumed 346.69 321.53 309.85 7.83% 11.89% 988.21 821.27 20.33%
    Purchases of Stock-in-Trade 11.70 34.57 3.27 -66.16% 257.80% 70.10 74.37 -5.74%
    Changes in Inventories -88.45 24.31 -49.11 NA 80.11% -158.04 -219.62 NA
    Employee benefits expense 247.93 238.21 223.17 4.08% 11.09% 729.54 692.25 5.39%
    Power and Fuel 1,467.26 1,377.79 914.00 6.49% 60.53% 4,358.76 2,353.52 85.20%
    Freight and Forwarding Expenses 950.66 868.38 788.74 9.48% 20.53% 2,733.58 2,340.99 16.77%
    Other Expenses 636.75 630.48 601.99 0.99% 5.77% 1,959.69 1,793.42 9.27%
    EBITDA 900.84 702.10 959.05 28.31% -6.07% 2,383.66 3,197.65 -25.46%
    EBITDA Margin (%) 20.95% 17.39% 26.37%  356 bps -542 bps 18.69% 30.04% -1135 bps
    Finance Cost 70.16 66.01 53.91 6.29% 30.14% 191.60 163.95 16.86%
    Depreciation & Amortisation expense 442.58 395.62 285.30 11.87% 55.13% 1,187.85 849.15 39.89%
    Profit Before Tax 388.10 240.47 619.84 61.39% -37.39% 1,004.21 2,184.55 -54.03%
    Tax 106.27 57.23 137.14 85.69% -22.51% 260.28 507.02 -48.66%
    Profit After Tax 281.83 183.24 482.70 53.80% -41.61% 743.93 1,677.53 -55.65%
    PAT Margin (%) 6.56% 4.54% 13.27% 202 bps -671 bps 5.83% 15.76% -993 bps
    EPS (in Rs.) 78.18 50.81 133.58 53.87% -41.47% 206.46 464.15 -55.52%

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