Shree Cement, one of India’s leading cement companies, faced a setback in the March FY23 quarter as its standalone profit witnessed a 15.3% year-on-year decline. The decline, amounting to Rs 546.2 crore, was attributed to a substantial rise in power and fuel costs. Despite this, the company’s standalone revenue experienced a notable growth of 16.7% to reach Rs 4,785 crore, surpassing analysts’ expectations. However, the operating numbers fell short of projections, causing a slight disappointment.
In an effort to maintain investor confidence, Shree Cement declared a second interim dividend of Rs 55 per share for FY23, indicating its commitment to providing returns to shareholders. The company’s ability to generate higher revenue despite challenging market conditions is commendable. As Shree Cement navigates the evolving dynamics of the cement industry, analysts and investors will closely monitor its strategies to mitigate cost pressures and sustain profitability in the future.