Shree Cement Reports 15% Drop in September Quarter Profit Due to Rising Costs

Shree Cement posted a 15 per cent decline in net profit to ₹263 crore for the September quarter, constrained by elevated fuel prices and higher operational costs, even as revenue grew by 24 per cent.

Shree Cement has reported a 15 per cent fall in its net profit for the September quarter, coming in at ₹263 crore compared to ₹310 crore recorded during the same period in the previous financial year. The decline in profitability was largely attributed to higher operational and fuel costs.

Despite the dip in net profit, the company registered a 24 per cent increase in revenue, reaching ₹5,897 crore compared to ₹4,761 crore in the corresponding quarter last year. Sales volumes also saw an upward movement, rising 14 per cent year-on-year to reach 10.52 million tonnes.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at ₹1,016 crore, showing an increase from ₹974 crore in the previous year. However, consolidated EBITDA per tonne witnessed an 8 per cent year-on-year decline, dropping to ₹966 from ₹1,055, which the company primarily linked to elevated fuel prices.

During the quarter, Shree Cement observed growth in its premium product segment within its India operations. Sales of premium products increased to account for 29 per cent of the total trade volume, up from 21 per cent in the corresponding period last year.

Neeraj Akhoury, Managing Director of Shree Cement, stated that the higher sales were supported by deeper market penetration, enhanced customer reach, and disciplined execution across operations. He noted that the continued focus on premiumisation was reflected in premium products contributing 29 per cent of trade volumes, which underscores brand strength and customer relationships.

Looking ahead, Akhoury added that backed by initiatives to gain market share and a disciplined approach to cost and efficiency enhancement, the company remains positioned to navigate market conditions.

"This financial report highlights a common challenge faced by large-scale manufacturing and traditional industries: strong top-line revenue growth can still be impacted by margin pressures stemming from external macroeconomic factors like elevated fuel prices. While Shree Cement has managed to scale its sales volumes and expand its premium product portfolio effectively, controlling input costs remains critical for protecting bottom-line profitability in a competitive market environment." — Dr. Shishir Gupta, Founder & CEO, StartupLanes