The company, India’s third-largest cement producer, sold 8.77 million tonnes during the quarter, slightly lower than 8.89 million tonnes a year ago. Net revenue from operations dropped 13% to Rs 4,235 crore, while EBITDA declined 23% to Rs 947 crore from Rs 1,234 crore in the same period last year.
On a sequential basis, the company’s profit jumped 146%, while net revenue was 14% higher. EBITDA for the quarter rose 60% sequentially. The September quarter is seasonally weak for cement-makers due to monsoon rains impacting construction activities.
Also Read: Stocks in news: Nestle, Vedanta, L&T, Motilal Oswal, Greenlam Industries
“We expect cement demand to grow on the back of likely increased rural consumption aided by improved farm cash flows, sustained healthy demand for urban housing, and expected increases in government spending on infrastructure projects,” Shree Cement said in a statement.The company is currently pursuing its capital expenditure program and aims to have more than 80 million tonnes of production capacity by 2028. It currently has a capacity of more than 56 million tonnes.
Shree Cement is expanding its plants in Rajasthan, Karnataka, Chhattisgarh, and Uttar Pradesh, expecting to commission these projects in the June quarter.
Also Read: Sebi cracks down on finfluencers selling tips as education
Brokerage Views
Jefferies
Jefferies maintained a ‘Buy’ rating on Shree Cement with a revised target price of Rs 30,670 (up from Rs 29,800). The company delivered a strong beat, achieving the industry’s best EBITDA per ton, driven by robust pricing in northern markets. Its focus remains on a value-driven strategy. However, EPS estimates have been cut due to an aggressive depreciation policy on new expansions.
Also Read: Q3 results today: Vedanta, Nestle among 134 companies to announce earnings on Friday
JPMorgan
JPMorgan maintained a ‘Neutral’ rating on Shree Cement with a revised target price of Rs 27,367 (up from Rs 27,300). The company’s value preference strategy is paying off, supported by strong cost controls that have boosted EBITDA per ton. A 15 MTPA capacity is set to be commissioned in Q1FY26. Additionally, modest price increases in the north are expected to align with other regions.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)