Shree Cements
The company has been on a winning run for some time now. And in Q3 ended 31st March 2013 too the performance was very good, led by both cement as well as power. The company posted a 26% (QoQ) rise in net profit at Rs.274 crore though net revenue rose only 2% at Rs.1457 crore. This was mainly thanks to the 16% (QoQ) drop in power and fuel costs, interest outgo coming down by 20% and there was a MAT credit fulfillment which reduced the tax outgo to Rs.18 crore from Rs.36 crore in Q2 and Rs.58 crore (YoY). In terms of segmental performance, revenue from cement sequentially rose 6% and EBIT margins came in healthy at 19%, up from 16% in Q2. In power, was actually muted, with revenue coming down 5% (QoQ) and EBIT margins at 16% v/s 22% in Q2.
Shree Cement has the largest single-location integrated cement plant in North India located in Rajasthan with an installed capacity of 13 million tonne. While North accounts for 72 per cent of its volumes, the rest is from the central India. The next quarters are expected to be much better given the price increase post monsoon. It is certain to end its current year with a big bang as its 9M net profit for period ended 31st March 2013 at Rs.720 crore has already surpasses that of previous full year at Rs.618 crore. With one more quarter to go, surely a company to watch out for in the cement sector.