Mumbai, July 31 (IANS) Shree Cement Limited on Friday reported a 17.7 per cent decline in consolidated net profit for the quarter ended June 30 (Q1 FY27), as elevated fuel and raw material costs weighed on margins despite robust growth in sales volumes and revenue.
The company’s net profit stood at Rs 529 crore in the April-June quarter of FY27, compared with Rs 643 crore in the corresponding period last financial year (Q1 FY26), according to its stock exchange filing.
Revenue from operations, however, rose 18 per cent year-on-year to Rs 6,233 crore from Rs 5,281 crore, supported by higher cement dispatches and improved demand.
At the operating level, EBITDA declined 4.5 per cent to Rs 1,272 crore from Rs 1,333 crore a year earlier.
EBITDA margin contracted sharply to 20.4 per cent from 25.2 per cent, as per its regulatory filing.
Shree Cement said higher fuel and raw material expenses, driven by the ongoing West Asia crisis, offset the benefits of higher sales volumes during the quarter.
Despite the margin pressure, the company delivered healthy operational performance. Cement sales volume increased 17 per cent year-on-year to 10.23 million tonnes, while total sales volume, including clinker, rose 17.2 per cent to 10.49 million tonnes.
Managing Director Neeraj Akhoury said the quarter was characterised by healthy demand, strong volume growth and continued progress in the company’s premiumisation strategy.
The company’s premium products accounted for 23.3 per cent of trade volumes during the quarter, compared with 17.7 per cent in the corresponding period last financial year.
Shree Cement also reported improvement in its sustainability initiatives, with its Thermal Substitution Rate (TSR) rising to 5.1 per cent from 1.9 per cent a year ago.
A higher TSR indicates greater use of alternative fuels in place of conventional fossil fuels, helping improve energy efficiency and reduce carbon emissions over time.
Following the earnings announcement, Shree Cement shares recovered part of their intra-day losses and were trading 1.23 per cent lower at Rs 26,130 in afternoon trade. The stock has declined more than 15 per cent over the past one year.
–IANS
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