MUMBAI: Cement maker, Shree Cement Ltd reported a 13.5 per cent drop in consolidated net profit at Rs 330. 35 crore during the June quarter of FY 21 as against a profit of Rs 382 crore in the same period last year.“During the quarter ended 30th June, 2020, company’s Indian operations were partially affected due to lockdown announced on account of Covid -19 pandemic by state and central government. The company has taken into account the possible impact of Covid-19 in preparation of the financial results,” the company said in a statement on Monday.
The company’s revenue was down by around 24 per cent at Rs 2,480 crore, as against Rs 3,302 crore during the last financial year. Total expenses too came down by 25 per cent at Rs 2,163 crore, mainly on the back of lower raw material costs.
“Notably unlike peers, Shree Cement does not witness any contraction in sequential expenditures on a per tonne basis as cement operating cost per tonne increased by around 7 per cent quarter on quarter and other expenditures per tonne witnessed sequential increase of 7.9 per cent. However, input cost per tonne softened by 5 per cent QoQ,” said senior research analyst at Reliance Securities Binod Modi.
Shree Cement also reported 22 per cent YoY drop in earnings before interest, tax, depreciation and amortization to around Rs 700 crore, while EBITDA/tonne stood at Rs 1,422 in the June quarter of FY21.
“A below par realization improvement and higher operating cost compared to peers despite Shree Cement being the cost leader in the industry impacted its operating performance. However, volume stood better than industry’s performance,” said Modi.
Stock has already witnessed sharp run up over last couple of months and below par performance does not bode well for the stock in the near term, he added
Shares of Shree Cement rallied 2.26 per cent to Rs 22,388 after the result announcement.
Source: ET Markets