InvestorQ : How did Shree Cements report such a sharp growth in net profits for the Dec-20 quarter?
manisha Kolvenkar made post

How did Shree Cements report such a sharp growth in net profits for the Dec-20 quarter?

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Crowny Pinto answered.
4 weeks ago
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Shree Cements PAT doubled to Rs.632 crore for the Dec-20 quarter on the back of lower operating costs. India’s second largest cement manufacturer reported 12.57% growth in revenues for at Rs.3,541 crore. Cement sales got a boost from a slew of infrastructure projects as the government pushed spending by taking the lead as retail demand for housing remains tepid.

Consolidated operating profits were up 91.6% at Rs.804 crore for the Dec-20 quarter. This improvement came on the back of lower employee benefits costs, better application of inventory strategies to unlock working capital and lower depreciation provided. As a result the OPM expanded sharply from 13.34% in Dec-19 quarter to 22.69% in Dec-20 quarter.

Group PAT for the Dec-20 quarter was up 103% at Rs.632 crore on transmission of operational performance and also on account of lower finance charges in the quarter. PAT margins improved from 9.91% in Dec-19 quarter to 17.83% in the Dec-20 quarter.

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