Shares of Shree Cement climbed over 6% and hit a 52-week high of Rs 30,429.95 on the NSE on Thursday following a strong December quarter earnings where the company delivered an all-round performance led by an improved realisation and cost reduction amid robust demand growth.

The Bangur family-promoted Shree Cement posted a 165% year-on-year (YoY) jump in its December quarter net profit at Rs 734 crore versus Rs 277 crore reported by the company in the year-ago period. On a quarter-on-quarter (QoQ) basis, the uptick was 49% over Rs 491 crore reported in the September ended quarter of the current financial year.

Net revenue from operation stood at Rs 4,901 crore up 20% YoY from Rs 4,069 crore reported in the year-ago period. On a sequential basis, it was up 7% over Rs 4,585 crore reported in Q2FY24.

The capacity utilization improved from 72% to 77% on YoY basis. The Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) went up by 74% YoY from Rs 708 crore in Q3FY23 to Rs 1,234 crore in the reported quarter.

The sale of premium products rose to 9.5% vis-à-vis 7.2% of total trade sales on YoY basis, the company said in its filing to the exchanges.

Also read: Budget 2024-Sensex Live UpdatesRecently, the Company commenced commercial production from its integrated cement plant at village Gothra in Nawalgarh Tehsil of Rajasthan having clinker capacity of 11500 tonnes per day (3.8 million tonnes per annum) and cement capacity of 3.5 million tonnes per annum with effect from January 22, 2024. The work on 18 million tonnes capacity expansion projects already announced is running as per schedule, the company filing said.“Shree Cement is executing a comprehensive performance improvement plan, and we are experiencing a positive impact. Strong volume growth along with building premium products through accelerated channel expansion and softening of fuel prices has helped us to deliver a robust improvement. We have embarked upon a comprehensive re-branding program which will help us build a differentiated positioning and win consumers delight,” Neeraj Akhoury, Managing Director, Shree Cement said.

Akhoury said that the company has commissioned the Purulia and Nawalgarh plant this year and its capacity growth plans are on track. The company aims to reach beyond 80 million tonnes cement production capacity by year 2028.

Nuvama has upgraded the stock to ‘Hold’ from an earlier ‘Reduce’ rating and increased the target price to Rs 29,495 from Rs 22,749. “SRCM’s ambitious capex plan will help deliver sustained volume growth and allow it to maintain cost leadership in the cement industry,” this brokerage said.

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