Shree Cements recorded an 84.2% YoY increase in separate profit at Rs 581.1 crore for June FY24, driven by other income of Rs 161.7 crore for the given quarter.

Shree Cements sent a better bottom-line performance, and power and fuel expenses as a percentage of revenue also loosed to 24% versus 26% earlier. Bloomberg consensus had projected a net profit of Rs 404.6 crore for Q1FY24.

In reaction, the stock prolonged its rally, and at 12.10 pm, it was trading nearly 1.57% higher at Rs. 24,054 on the National Stock Exchange.

In the corresponding quarter of 2022, the company reported a net profit of Rs 316 crore.

The standalone revenue grew 18.9% to Rs 4999.1 crore versus Rs 4202.7 in the year-ago period. Bloomberg’s consensus estimate was Rs 4623.7 crore.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at Rs 932.6, up 14% YoY. Bloomberg estimates for EBITDA was Rs 913.5 crore.

Meanwhile, EBITDA margins shortened to 18.6% June 30 quarter versus 19.5% for the corresponding quarter of 2022.

Separately, the company board approved an investment of Rs 7,000 crore for snowballing clinker, and cement capacity utilised for a clinker manufacturing plant of 3.65 million tonnes at Pali, Rajasthan, and cement capacity of 6.0 MT in Rajasthan and Uttar Pradesh by FY25.

Moreover, the clinker manufacturing plant of 3.65 MT at Kodla and cement capacity of 6.0 MT at Kodla and Bangalore is planned by the end of FY25.

The board will strategically diversify Ready Mix Concrete (RMC) business by setting up 5 RMC units by FY24. It approved funds raising by issuing Non-Convertible Debentures (NCDs) aggregating up to Rs 1,000 crores in one or more tranches on a private placement basis.