SHREE CEMENTS
The Indian cement market is the second-largest market with a cement production capacity of approximately 545 million tonnes (MT) in FY20. There are approximately a total of 210 cement plants in India out of which 77 plants are established in the states of Andhra Pradesh, Rajasthan and Tamil Nadu.
Shree Cements is one of the largest cement production company and is one of the top 50 companies listed in India in terms of market capitalisation. Shree Cement has a consolidated Cement Production Capacity of 44.4 Million tonnes per annum (including overseas) and a Power Generation Capacity of 742 Megawatts. The company operating in India and the UAE among which it has established 4 plants and 1 in UAE. The company use alternate fuels for the production of cement and have the highest installed Waste Heat Recover Power plant after China. Shree Cements philosophy is ‘Let noble thoughts come to us from all over the World’ which is taken from Rigveda.
The company is becoming a major player in the power sector with Shree Power and Shree Mega Power brands and has the strong cash-generating ability from its core business which can be noticed by the improving cash flow from operations for the last 2 years. Some of the popular brands of the company are Shree Cement, Bangur cement, Roofon, Rockstrong cement. The company have various opportunities to outperform due to strong demand for cement because of major infrastructure push by the government through the National Infrastructure Pipeline and due to rising delivery percentage compared to the previous day and months’ strong volumes.
The company has also made their oxygen plants run to their full capacity amid the Covid crisis and also, crossed Rs 1 trillion in market capitalisation. Shree Cement promoters were kept under scanner for ‘acquiring shares at a steep discount’.
The Board of Directors of the Company has recommended final dividend @ Rs. 60/- per equity share for the year ended March 31, 2021. As per Q4 results announced, the company showed an increase in PAT by 26.63% QoQ and an increase in PAT by 48.28% YoY. Moreover, the company showed an increase of 26.84% in earnings per share against the previous quarter and an increase in PBT by 14.97% against the December quarter. Shree Cement Ltd grew a 19% in Revenue from operation and stood at Rs 4204.8 Cr in Q4FY21, compared to Rs 3541 Cr in Q3FY21 while the assets were increased by 7.97% against H1FY21.
The Q4 results of Shree Cements were awe-inspiring in terms of financials as well as initiatives taken during pandemic as a social responsibility.
