InvestorQ : How do you see Shree Cements stock after the latest results announcement?
Anamika Sodhani made post

How do you see Shree Cements stock after the latest results announcement?

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Juvina Maggie answered.
2 weeks ago
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Shree Cements has for a long time been one of the most profitable cement companies in India. It is part of the Bangur group and was formerly called Bangur Cements. For the Sep-20 quarter, Shree Cements reported 8.2% growth in sales revenues at Rs.3250 crore.

This growth in sales in a tough quarter was achieved by a combination of higher volumes as well as better pricing traction in some of the key markets of Shree Cements. From the lows of Jun-20, sales revenues have picked up 30% sequentially and that is the good news.

Operating profits for the quarter were higher by 64.11% yoy at Rs.690 crore. This was largely because the company managed to grow sales by 8% even while it managed to keep its core cost structure almost static, so every rupee of sale added to profits proportionately. Effectively, the entire sales accretion got passed on to operating profits.

OPM for the quarter grew from 13.99% in Sep-19 quarter to 21.23% in Sep-20 quarter. This is virtually best in class in the cement sector. Overall net profits grew 69% to Rs.528 crore due to which the PAT margins in the Sep-20 quarter moved up from 10.34% to 16.24%.

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