Shree Cement, a midcap cement company, released its quarterly results after market hours for the July quarter. The company’s standalone profit for the reporting period sharply declined by 81 per cent, falling from Rs 4.90 billion in Q2FY24 to Rs 930.1 million. In the previous June quarter, the company’s net profit had been Rs 3.17 billion.

The revenue for the cement manufacturer also dropped to Rs 37.30 billion, compared to Rs 45.60 billion in the same period last year.

The company’s profit and revenue to be Rs 41.63 billion, marking a 9 per cent decrease, while the profit after tax (PAT) was projected to sink by 84 per cent year-on-year, to Rs 780.4 million for the September quarter.

On the operational side, EBITDA was reported at Rs 5.90 billion, down from Rs 8.70 billion in the same quarter of the previous year. The EBITDA margin slipped by 3.18 per cent or 318 basis points to 15.9 per cent. Analysts had expected the margins to be around 16.1 per cent, down from 19.08 per cent in Q2FY24.

Analysts had anticipated a drag on the company’s earnings, influenced by a decline in both cement prices and revenue during the quarter.

There was also an expectation that new capacity expansion would drive volume growth during the review quarter.

Despite the challenging demand conditions, due to the prolonged monsoon and softer prices affecting the industry, the company’s focus on maintaining brand equity, product premiumisation, and improving its geo-mix helped maintain its realisations on a quarter-on-quarter basis. Additionally, cost optimisation and operational efficiency measures contributed to driving EBITDA during the quarter, according to the company’s press release.