Shree Cement Faces Profit Drop as Sales Volume Declines

Shree Cement Ltd, India's third-largest cement firm, reported a significant drop in net profit by 72.4% to Rs 193.72 crore for Q3 of FY 2024 due to lower sales volume. Despite revenue and sales volume declines, operational efficiencies helped improve sales of premium products and increase EBITDA.

Shree Cement Ltd, the third-largest cement producer in India by capacity, reported a dramatic drop of 72.4% in consolidated net profit for the third quarter ending December 2024, with earnings falling to Rs 193.72 crore. This downturn is attributed to a decline in sales volumes.

The firm, led by the Bangur family, noted a decrease in revenue from operations by 12% to Rs 4,572.68 crore, compared to Rs 5,193.47 crore in the same quarter of the previous fiscal year. Despite these challenges, total expenses rose slightly to Rs 4,458.75 crore.

Notably, Shree Cement managed to boost sales of premium products and improve its EBITDA to Rs 947 crore, thanks in part to cost optimizations and softer fuel prices. Managing Director Neeraj Akhoury highlighted the strategic focus on premium products, dealer network strengthening, and operational efficiency as key drivers for steady sales volume improvement.

(With inputs from agencies.)