Q4FY21 Result Update - Shree Cement - ICICI Direct

The key positive trend during the quarter was Shree Cement (SCL) reporting industry leading margins at ~30% (vs. I-direct estimate: 28.5%) despite a rise in cost of production (up 8% YoY) on account of higher freight and other costs and rise in employee costs due to increments. EBITDA grew 9.1% YoY (8.1% QoQ) to Rs. 1177.2 crore, led by improved sales volume (up 19% YoY to 8.22 MT) and better realisations. Further, the company managed to keep production cost at Rs. 3,350/t, lowest in the Industry. SCL aims to double its capacity every seven years. The current cement capacity is at 44.4 MT (including UAE), which will increase to 50.4 MT with the commissioning of 6 MT cement capacity at Odisha and Maharashtra. It is also adding 3.5-4 MT clinker capacity with capex of ~Rs. 1000 crore at Raipur (likely by September 2022E). With a pick-up in infra, real estate and likely better monsoon, we expect the growth momentum to be strong and expect revenue and PAT CAGR of 16.6% and 16.4%, respectively, in FY21-23E.

For details, click on the link below: Link to the Report

Shares of SHREE CEMENT LTD. was last trading in BSE at Rs.27038.9 as compared to the previous close of Rs. 26944.4. The total number of shares traded during the day was 2067 in over 962 trades.

The stock hit an intraday high of Rs. 27299.9 and intraday low of 26909.1. The net turnover during the day was Rs. 55902193.

Source : Equity Bulls

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