Shree Cement Q4 FY25: Profit Falls 16% to ₹556 crore Despite Revenue Rising 3.3% to ₹5,240 crore

Shree Cement Ltd., a prominent player in the Indian cement sector, has reported a nuanced financial performance for the fourth quarter of the fiscal year 2024-25. The period saw the company dealing with escalating input costs, which ultimately impacted profitability despite a rise in revenue and stable margins.

The cement major announced its consolidated financial results for the quarter ending March 31, 2025, revealing a 16 percent decline in net profit. The net profit stood at ₹556 crore for Q4 FY25, down from ₹662 crore reported in the corresponding period last year. The primary driver behind this contraction in profit was attributed to rising input costs, specifically mentioning higher prices for coal and pet coke.

Conversely, the company experienced a modest uptick in its top line. Revenue from operations for the fourth quarter rose by 3.3 per cent, reaching ₹5,240 crore compared to ₹5,073 crore in Q4 FY24. This revenue growth was underpinned by steady demand for cement across both retail and institutional segments. Shree Cement also reported its highest-ever quarterly volume in cement and clinker sales, totalling 9.84 million tonnes in the March quarter.

Margins Remain Resilient

Despite the pressure from input costs, Shree Cement managed to maintain stability in its operational margins. The company's Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) for the quarter saw a 4.1 percent increase, rising to ₹1,381 crore from ₹1,327 crore in the same period last year.

The EBITDA margin for Q4 FY25 was recorded at 26.36 per cent. This represents a slight improvement from the 26.17 percent margin in Q4 FY24, equivalent to an increase of 20 basis points year-over-year. This stable margin profile suggests the company's ability to effectively manage costs amidst rising raw material prices and intense market competition. The company's focus on operational efficiency has been highlighted as a factor contributing to this.

Strategic Focus and Outlook

Looking ahead, Shree Cement outlined strategic initiatives aimed at bolstering growth prospects. Key focus areas include capacity expansion through investments in new plants and enhancements to existing facilities. The company is also prioritising cost control through enhanced procurement strategies and energy efficiency measures, alongside a focus on sustainable practices, including green energy and waste heat recovery.

The company reported a strong close to FY25, with growth recorded across key performance metrics. Improved profitability was attributed to a strategic focus on premium products and operational efficiency. Looking ahead to FY26, management remains optimistic about the outlook for cement demand. Strategic priorities will include driving premiumisation, optimising geographical mix, and enhancing cost efficiencies. A strong brand presence and an extensive distribution network are expected to continue reinforcing the company's market position.

Dividend Announcement

In addition to the financial results, Shree Cement's board has recommended a final dividend of ₹60 per share. This is in addition to the interim dividend of ₹50 per share for the year 2024-25 that was declared in January 2025. The final dividend recommendation is subject to shareholder approval at the forthcoming Annual General Meeting.

Overall, Shree Cement's Q4 FY25 performance reflects the challenges posed by input cost inflation, offset partly by volume growth and effective cost management strategies. The company's focus on expansion and operational efficiencies signals its intent to capitalise on anticipated demand improvements in the next fiscal year. 

Market Reaction

The company announced its results post market closing,which is why the result did not impact the stock performance. The company’s stock ended the session at ₹30,815, registering a gain of 2.12%.

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