Concrete

Shree Cement witnesses high input cost at Rs 910 cr in Q4 FY22

Published

3 years ago

May 26, 2022

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Shree Cement’s cement volumes drop by 2.3% YoY to 8 mt in FY22

Shree Cement Limited told the media that it had hit higher-than-expected input costs, with standalone Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) at Rs 910.6 crore in the fourth quarter (Q4) of FY22, lower than the consensus estimate of Rs 1,010.7 crore.

According to the analysts, the muted cement prices in its key market of East India Limited can pass on the burden of increased costs with a decline in operating margin. At 22.2%, its standalone operating margins fell to a three-year low in Q4 FY22.Shree Cement has been enjoying premium valuations as it can control costs better than competitors.

Kotak Institutional Equities said that Shree Cement’s EBITDA per tonne premium over Ultratech Cement Limited has been declining for the past three years and has now merged.

In Q4 FY22, cement volumes declined by 2.3% year-on-year (YoY) to 8 million tonnes (mt).

In FY22, its standalone volume growth at 3.3% was much lower than its counterparts. The company is adding more capacities in the East and North India and aims to reach 57 million tonnes per annum (mtpa) capacity in the next three years.

The pace of improvement in the existing capacity utilisation and price hikes are crucial. In FY22, its capacity utilisation stood at 60%.The company’s stocks were at Rs 21,650 on 7 March 2022 on the National Stock Exchange (NSE). Last year, its shares had given negative returns of 20.6%.

As per the FY23 EBITDA estimates of Axis Securities Limited, the Shree Cement stock is trading at a 22x valuation. For FY24, the domestic brokerage house witnesses multiple moderating to 17x.

Axis Securities told the media that Shree Cement is under pressure, and the premium valuation for its operating efficiency is now at risk.

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Also read: Shree Cement net profit declines 23.6% to Rs 482 cr in Q3 FY33

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Star Cement launches ‘Star Smart Building Solutions’

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Nuvoco Vistas reports record quarterly EBITDA

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June 17, 2025

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Nuvoco Vistas reported its highest-ever quarterly consolidated EBITDA of Rs.556 crore in Q4 FY25, with annual EBITDA at Rs.1,391 crore. Cement sales reached 19.4 MMT in FY25, with Q4 contributing 5.7 MMT. Revenue rose 4 per cent YoY to Rs.3,042 crore in Q4. Net debt reduced by Rs.390 crore to Rs.3,640 crore. The company received NCLT approval for acquiring Vadraj Cement, targeting 31 MMTPA capacity by FY27. Key marketing initiatives, expanding RMX and MBM businesses, and a focus on sustainability (457 kg CO2/tonne) drove performance. Nuvoco remains focused on premiumisation, operational efficiency, and market expansion.

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Concrete

UltraTech Cement increases capacity by 1.4Mt/yr

Published

4 days ago

June 17, 2025

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UltraTech Cement has expanded its production capacity by 1.4 million tonnes per annum (Mt/yr) through a combination of debottlenecking efforts and operational efficiency upgrades across several of its plants. The enhancements include an addition of 0.6Mt/yr in grinding capacity at the Nagpur facility in Maharashtra and a combined 0.8Mt/yr at the Panipat and Jhajjar units in Haryana. With these upgrades, the company’s total domestic grey cement capacity has risen to 184.8Mt/yr, while its global capacity now stands at 190.2Mt/yr.