Shree Cement Q4 net profit jumps 83%

Kolkata headquartered Shree Cement witnessed spike in its fiscal fourth quarter to March 2020 despite of ongoing lockdown in the country impacting its revenue.

The Coronavirus or Covid-19 pandemic has stalled construction and economic activities across the country.
Shree Cement, which generates bulk of its revenue by catering demand in the north and northeast of India, has posted 83.2% increase in net profit over last year to Rs 588.2 crore in the quarter ended March.
The bottom line was mainly aided by an improved operational performance. The company’s earnings before interest, tax, depreciation and amortisation rose 27.3% to Rs 1,079 crore—highest in at least nine quarters. That came as fuel and power expenses fell, while employee cost remained stable.

A more than twofold jump in other income at Rs 98 crore also lifted Shree Cement’s profit after tax.
The volumes fell by 5.5% over the previous year to 6.9 million tonnes.
Realisation rose by 8% on year to Rs 4,760 per tonne, led by higher prices of cement in northern India compared to eastern and southern parts of the country. The company’s Ebitda per tonne—a key metric for cement companies—rose 34% over the previous year to Rs 1,564.
For Shree Cement the real problem is demand, not production.

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