Shree Cement stock loses grip despite firm's strong show in September quarter

Shree Cement Share Price: Shree Cement reported strong quarterly numbers on Tuesday, but the impact of those results was not evident in the performance of its shares in the morning session on BSE on Wednesday (November 8) as the stock declined by over 1 per cent.

Shree Cement shares were down by 1.17 per cent, or Rs 311.20, at Rs 26,350.00 each, at 10:39 am on Wednesday.

Shree Cement Q2 Numbers

It beat Zee Business research estimates of Rs 444.4 crore.

The company's standalone revenue from operations also jumped by 21.3 per cent to Rs 4,584.6 crore in the quarter under review against Rs 3,781 crore in the corresponding quarter last fiscal.

It beat analysts' estimate of Rs 4,483.8 crore for the September quarter.  

The company's Q2 margin of 19 per cent in the second quarter slightly missed analysts' estimates of 19.5 per cent, but it was much higher than its Q2 FY23 margin of 13.8 per cent.

Among other important parameters of the company's Q2 performance, its capacity utilisation increased from 65 per cent to 71 per cent YoY.

Sales of its premium products increased from 7.5 per cent to 9.5 per cent of total sales YoY while its volume growth stood higher by 10 per cent on a yearly basis.

Board Decision

Shree Cement's board has approved brownfield cement grinding capex of Rs 550 crore. The project will be completed in September 2025.

It also approved the amalgamation of Shree Cement North Private Limited and Shree Cement East Private Limited into the company.

Shree Cement North Private Limited and Shree Cement East Private Limited both are subsidiaries of the company.