Shankara Building Products Ltd reports resilient performance for 9MFY24

Shankara Building Products Limited, a leading omnichannel marketplace of home improvement and building products, announced its financial results for the quarter and nine-month ended December 31, 2023.

Key Highlights for 9M FY2024

- Revenue from operations grew by 22% YoY to Rs. 3,452 crores

- Non-Steel Revenues grew by 35% YoY

- EBITDA grew by 25% YoY to Rs. 111 crore; EBITDA margin expanded by 6 bps to 3.2%

- PAT grew by 30% YoY to Rs. 57 crore

- Earnings per share stood at Rs. 24.6, up by 28% YoY

- Working capital days continues to be around 30 days

Key Highlights for Q3 FY2024

- Revenue from operations grew by 9% YoY to Rs. 1,177 crore

- Non-Steel Revenues grew by 43% YoY

- EBITDA grew by 23% YoY to Rs. 40 crore; EBITDA margin expanded by 39 bps YoY to 3.4%

- PAT grew by 31% YoY to Rs. 21 crore; PAT margin expanded by 31 bps YoY to 1.8%

- Earnings per share stood at Rs. 9.1, up by 27% YoY

Commenting on the performance, Mr. Sukumar Srinivas, Managing Director, Shankara Building Products Ltd said: "Despite the challenges faced by the building materials industry in recent times, we're delighted to announce a 22% year-on-year revenue growth during the first nine months of fiscal year 2024. Particularly encouraging is the impressive growth of our non-steel revenues, which have grown by nearly 35% yearon-year. We attribute this success to our proactive strategy of strengthening our value-added product portfolio, including the successful introduction and expansion of our private label in tiles, Fotia Ceramica.

Furthermore, our profitability for this quarter has shown a noticeable improvement compared to previous periods, reflecting our focused efforts in bolstering both our value-added steel segment and non-steel business. We remain committed to leveraging our digital presence and are actively exploring opportunities for strategic collaborations in the digital realm to augment our existing omni-channel strategy. Through these initiatives, we aim to revolutionize our ecosystem with technology and innovation.

In line with our strategic objectives, we are in the process of demerging our building materials marketplace, which has consistently delivered significant value. This move will streamline our business structure, enabling a more focused capital allocation strategy and heightened emphasis on value-adding avenues under our new generation management. Ultimately, our goal is to unlock substantial value for all stakeholders in the months and years ahead."

Shares of Shankara Building Products Limited was last trading in BSE at Rs. 752.90 as compared to the previous close of Rs. 744.95. The total number of shares traded during the day was 5919 in over 764 trades.

The stock hit an intraday high of Rs. 785.45 and intraday low of 732.85. The net turnover during the day was Rs. 4452710.00.

Source : Equity Bulls

Keywords

ShankaraBuildingProducts INE274V01019 Q3FY24 9MFY24 PerformanceUpdate