Shree Cement Reports Q1 Profit Decline Amid Sluggish Demand

Shree Cement Ltd, promoted by the Bangur family, reported a significant decline of 51.31% in its consolidated net profit for Q1 ending June 2024, due to sluggish demand. Despite higher revenues, the company faced increased expenses. Ongoing expansion projects are on schedule, and the firm is optimistic about future growth.

Bangur family-promoted Shree Cement Ltd on Tuesday reported a 51.31 percent decline in its consolidated net profit to Rs 278.45 crore for the first quarter ended in June 2024, attributing the downturn to sluggish demand.

The company posted a net profit of Rs 571.94 crore in the same period last year, according to an exchange filing by Shree Cement Ltd (SCL). However, revenue from operations increased by 1.73 percent to Rs 5,123.96 crore during the quarter under review, as compared to Rs 5,036.65 crore in the corresponding period of the previous fiscal year.

Total expenses rose by 10.05 percent to Rs 4,957.24 crore in the June quarter. SCL's total sale volume increased by 8 percent, while its EBITDA reduced by 2 percent from Rs 933 crore to Rs 916 crore. Despite challenges, Managing Director Neeraj Akhoury emphasized the company's focus on optimizing production processes and expanding its market share ahead of an anticipated rebound in demand.