Shree Cement Q1 Profit Falls 17.7% to Rs 529 Crore

Shree Cement attributed the margin pressure to higher fuel and raw material expenses linked to the ongoing West Asia crisis, which offset the benefits of increased sales volumes.

Despite the cost headwinds, operational performance remained healthy. Cement sales volume increased 17 per cent year-on-year to 10.23 million tonnes, while total sales volume, including clinker, rose 17.2 per cent to 10.49 million tonnes.

Managing Director Neeraj Akhoury said the quarter was marked by healthy demand, strong volume growth and continued progress in the company’s premiumisation strategy. Premium products accounted for 23.3 per cent of trade volumes during the quarter, up from 17.7 per cent in the year-ago period.

The company also reported improvement in its sustainability metrics. Its Thermal Substitution Rate rose to 5.1 per cent from 1.9 per cent a year earlier. A higher Thermal Substitution Rate reflects greater use of alternative fuels in place of conventional fossil fuels, supporting energy efficiency and lower carbon emissions over time.

Following the earnings announcement, Shree Cement shares recovered part of their intra-day losses and were trading 1.23 per cent lower at Rs 26,130 in afternoon trade. The stock has declined more than 15 per cent over the past one year.

The results highlight the impact of external cost pressures on profitability even as the company recorded solid volume growth and advanced its premium product mix.