Shree Cement, India’s third largest cement group, announced its financial results for the quarter and nine months ended 31st December, 2023. Continuing its growth momentum and robust performance, it delivered impressive results with Revenue growth of 20% and PAT increasing 165% on YoY basis.
Commenting on the performance, Neeraj Akhoury, Managing Director, Shree Cement Ltd. said, “Shree Cement is executing a comprehensive performance improvement plan, and we are experiencing a positive impact. Strong volume growth along with building premium products through accelerated channel expansion and softening of fuel prices has helped us to deliver a robust improvement. We have embarked upon a comprehensive re-branding program which will help us build a differentiated positioning and win consumers delight. We have commissioned Purulia and Nawalgarh plant this year and our capacity growth plans are on track.
We are confident of our potential to continue demonstrating superior performance. Our country is rapidly progressing on both housing and infrastructure, and this will provide a solid platform for India’s cement demand growth. We are fully prepared to complete our various projects to reach beyond 80 million tonnes cement production capacity by year 2028”.
Recently, the Company commenced commercial production from its integrated cement plant at village Gothra in Nawalgarh Tehsil of Rajasthan having clinker capacity of 11500 tonnes per day (3.8 million tonnes per annum) and cement capacity at 3.5 million tonnes per annum w.e.f. 22nd January 2024.
The work on 18 million tonnes capacity expansion projects already announced is running as per schedule. Additionally, the Company has decided to add one more cement mill of 3.0 million tonnes per annum capacity
The Company’s green power generation capacity stood at 474 MW. This is set to increase further with more investments lined up by the Company.The Company’s share of green power in total power consumption in 9M’FY24 stood at 57% vis-à-vis 51% achieved in FY 2022-23.
A notable achievement during the quarter was our rating upgrade by DJSI as part of its Corporate Sustainability Assessment where the Company’s score went up 62 vis-à-vis 53 achieved last year.
The Company also continues to make satisfactory progress on improving TSR levels and alternative raw material and fuel consumption.
During the quarter, the Company undertook a major initiative of revamping its brand identity with ‘Bangur cement’ as the master-brand. This was implemented with a new brand identity through a new logo and pack graphics along with a new premium product launch - Bangur Magna. A new multi-media advertising campaign has been launched across television, outdoor, print, digital and retail touchpoints.
In line with the Company’s announcement of diversifying to Ready Mix Concrete (RMC) segment by setting up 5 RMC units by year end, the Company has started work on setting up 3 RMC plants in the month of January2024 and actively working on materializing the remaining units.
The Board of Directors in meeting declared an interim dividend of Rs 50/- per share for the year 2023-24.
Primarily fueled by investments in infrastructure and large-scale housing projects, cement demand in India is expected to remain robust in the mid-term in line with country’s broader economic development goals.
