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Earnings Call Transcript

Shree Cements Earnings Call Transcript: Key Takeaways

Shree Cement faces Q1 margin compression due to Middle East logistics disruptions impacting fuel and raw material costs. Management remains aggressive on volume growth despite specific operational headwinds.

Highlights
Revenue growth15% volume growth, though margins were squeezed by fuel costs.
MarginsContraction; fuel cost peak in Q1, expected recovery in Q2.
Demand visibilityPositive; expecting 7-8% industry growth, aiming for 10% internally.
Management confidenceHigh on volumes, defensive about cost-related margin misses.

Growth

17% volume growth driven by South and North regions, but EBITDA/ton fell due to high-cost coal substitution.

Outlook

Targeting 40 million tons volume for FY27; planned ₹1500 Cr capex for Indian operations.

Risks

Continued Middle East conflict, high ash content in fuel, and lower conversion factors for blended cement.

Last quarter's promises, checked

Delivered

  • Guided 2-3% FY26 volume growth → delivered 2.2% (= BEAT)
  • Guided 69.3 MT total capacity by Q4 FY26 → delivered 69.3 MT (= BEAT)
  • Guided INR 110/bag price gap vs peers → delivered INR 15-20/bag reduction (= BEAT)

Partly delivered

  • Guided INR 1500 Cr FY27 capex → delivered INR 1500 Cr plan with slowed aggression (= PARTIAL)
  • Guided 80 MT capacity by 2029 → delivered target maintained but pace moderated (= PARTIAL)

Missed

  • Guided INR 1600-1700 Cr FY27 depreciation → delivered EBITDA contraction/margin squeeze (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: SHREECEM. Summary written with AI assistance from the document.

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Shree Cements Ltd: key numbers

Share price
₹22,520.00
Market cap
₹81,254 Cr
Revenue (annual)
₹20,943 Cr
Net profit (annual)
₹1,744 Cr
P/E (TTM)
49.9×Sector 33.0×
Promoter holding
62.55%+0.00% QoQ
FII holding
8.21%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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