Shree Cement - 3QFY2013 Result Review - Angel Broking

Shree Cement (CMP: Rs.4,495/ TP: -/ Upside: -)

For 2QFY2013 Shree Cement posted a 19.4% yoy growth in topline to Rs.1,428cr. However, the cement division posted a marginal 3.1% yoy growth in topline Rs.1,115cr impacted by poor demand during the quarter. Cement prices too fell on a sequential basis during the quarter, although they were higher on a yoy basis. Power business posted a strong 87.8% yoy growth in topline to Rs.449cr, due to higher capacity operational during the quarter on account of commissioning of new plants. OPM was down by 175bp yoy to 26%. Bottomline rose by 267% yoy to Rs.217cr due to superior operating performance and a 65% yoy reduction in depreciation to Rs.82cr.

We maintain a neutral view on the stock.

Source : Equity Bulls

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