Quarterly Results: Shree Cement Ltd

Technical View: 

Shree Cement Ltd., is currently trading at Rs. 16358.35, down by 440.55 points or 2.62% from its earlier closing of Rs. 16798.9 on the BSE.

The scrip has touched a high and low of Rs. 17250 and Rs. 16330.25 respectively, after opening at 17199.8. By far 35540(NSE+BSE) shares were traded on the counter; and the stock is currently trading above its 50 DMA.

Standalone Results Q2FY17: (Rs. in crore)


***EBITDA margin change in bps

Shree Cement’s Q2FY17 standalone numbers are a mixed bag in comparison with the streets estimates. Revenue  has come in 10.5% above the estimated Rs 2,040 cr. EBITDA is 10.7% higher than the estimated figure of 593 cr and EBITDA margin has come in-line with the estimated 29.1%. However, the company has reported a net profit that is 19.5% lesser than the consensus estimate of Rs 362 cr.

The company's standalone net revenue for the quarter has surged 17.7% yoy to Rs 2,254 cr, anchored by growth in volumes and realisations by 9% yoy and 6% yoy, respectively.

Shree Cement's reported EBITDA has surged by 57.7% yoy to Rs 656 cr while EBITDA margins have expanded 738 bps yoy to 29.1%. This was driven by the higher realisations and 4% yoy drop in power and fuel expenses.

The company's  net profit stands at Rs 292 cr showing a yoy increase of 18.3%. This is majorly attributed to the 77% rise in depreciation and 25% rise in finance cost.

Management expects demand to pick up further in Q2FY17 with a 7%-8% expansion in volumes.