- 22 May 2023
- ICICI Securities
Shree Cement Q4 Results 2023: Higher realisations aid profitability in Q4FY23
Shree Cement Ltd | CMP: 27698 | Market Cap: 99,936.25
Higher realisations (bucks industry trend) aids profitability in Q4FY23
Q4FY23 Earnings Summary
View: During the quarter, the share of green power consumption in total power consumption stood at 54% against 50% in the corresponding quarter of the previous year. Company is working on setting up more such plants with an aim to increase the share of green energy in total energy consumption to >55% in next 2 years. On the capex front, company incurred capex of Rs 2800 crore owing to upcoming projects of enhancing capacity from 46.4 MT to 55.9 MT by FY25E (overall capex of Rs 6500 crore). Company would strive to continue being the low-cost producer and has outline various initiatives such as Increase proportion of rail dispatches, stepping up its efforts to increase use of agriculture and industrial waste to improve Thermal Substitution Rate (TSR) from current 3.9% to 15% over the next couple of years and investing in brand equity to perk up sales of premium products and fetch higher realisations.
Impact: Neutral