Shree Cement Q1 Results: Net Profit Soars 84%, Board Approves Rs 7,000 Cr Capex Plan

Shree Cement Limited, a prominent cement group in India, is renowned for its industry-leading green credentials, innovative practices, and cost leadership. Shree Cement is recognized for producing high-quality products through advanced manufacturing facilities in India and UAE. Committed to sustainability, the company strives to provide the most eco-friendly building material solutions to its consumers. As part of its growth plans, Shree Cement aims to achieve a production capacity of over 80 million tonnes in the future. 

Today, Shree Cement Ltd announced their stellar Q1FY24 results in which sales of the company grew by 19% and stood at Rs 4,999 crore as against Q1FY23, while EBITDA of the company surged by 14% to Rs 933 crore as compared to Q1FY23. Similarly, the net profit of the company jumped by 84% and stood at Rs 581 crore as against Q1FY23.  

Shree Cement Ltd approved clinker and cement capacity expansions worth Rs 7,000 crore. It includes adding 3.65 million tonnes of clinker capacity in Pali, Rajasthan and 6.0 million tonnes of cement capacity in Pali, Rajasthan and Etah, Uttar Pradesh. Additionally, there will be 3.65 million tonnes of clinker capacity and 6.0 million tonnes of cement capacity at Kodla and Bangalore in Karnataka with waste heat recovery-based power plants.  

Furthermore, its wholly-owned subsidiary initiated trial production at the Purulia plant, taking the group’s cement capacity to 49.9 MTPA in India. The Nawalgarh unit will be commissioned in Q3’FY24 and the Guntur district plant is targeted to be commissioned in Q2’FY25. 

The company has delivered returns of 17.81% over the past year and returns of 12% over the past 3 years. 

On Wednesday, shares of the company surged by more than 2% and made an intraday high of Rs 24,331.95. Additionally, the scrip had a spurt in volume by more than 1.42 times. 

Investors should keep a close eye on this trending stock. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.