Shree Cement, a leading Indian cement manufacturer, has reported a strong performance in the second quarter of the fiscal year, with a 46% growth in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). The company’s robust financial results were driven by its efficient operations, cost-saving measures, and strategic expansion plans.
The company’s revenue from operations increased by 24% year-over-year, reaching ₹3,415 crore (approximately $450 million USD) in Q2. The growth in revenue was driven by a 22% increase in cement sales volume, which reached 7.5 million tons during the quarter. The average selling price of cement also increased by 2% year-over-year, contributing to the revenue growth.
Shree Cement’s EBITDA margin expanded by 460 basis points to 25.4% in Q2, driven by a 32% reduction in power and fuel costs, as well as a 14% decrease in transportation costs. The company’s focus on cost optimization and efficient operations enabled it to maintain its profitability despite the challenging market conditions.
The company’s UAE operations also performed well, with a 25% increase in sales volume and a 30% increase in revenue. The UAE market has been a key growth driver for Shree Cement, and the company is well-positioned to capitalize on the region’s growing demand for cement.
Shree Cement’s strong Q2 performance was also driven by its strategic expansion plans, including the commissioning of new cement plants and the expansion of existing ones. The company has a strong pipeline of projects, including a 3 million ton per annum cement plant in Rajasthan, which is expected to be commissioned in the next fiscal year.
The company’s management expressed confidence in its ability to maintain its growth momentum, driven by its strong brand, efficient operations, and strategic expansion plans. Shree Cement’s focus on sustainability and environmental responsibility is also expected to drive long-term growth and profitability.
Overall, Shree Cement’s Q2 performance was strong, with a 46% growth in EBITDA and a 24% increase in revenue. The company’s robust operations, cost-saving measures, and strategic expansion plans position it well for long-term growth and profitability. With a strong brand and a growing presence in the UAE, Shree Cement is expected to continue to perform well in the future.