Shree Cement LtdQ3 FY25Cement & Cement Products

Shree Cement Ltd

Q3 FY25 Earnings Call Analysis

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→Volumes: Achieved 6.8% cement volume growth recently; aiming to grow marginally better than industry growth, maintaining or increasing market share especially in North India. Expected volume for FY '26 is around 37-38 million tons.
→Realization: Delivered 9% realization growth year-on-year, better than industry, driven by premium product focus and improved brand value.
→RMC business: Rapid ramp-up with 24 plants operational; targeting 40 plants by FY '26. Working to optimize profit and revenue levers before further expansion.
→Capacity expansion: New kiln commissioned in North plant with cement mill commissioning soon; continuous evaluation for capacity addition based on market demand.
→UAE business: Significant volume and revenue growth; expansion ongoing due to robust demand.
→Overall: Strategy focused on value over volume, delivering better than industry EBITDA growth; committed to sustainable growth aligned with demand trends and fiscal policies.

Margin guidance

Category 3

→Shree Cement expects to grow either in line with or slightly better than the industry in volume terms.
→The company maintains a "value over volume" strategy focusing on premiumization and price realization rather than sheer volume growth.
→Cement realization growth has been around 9% YoY in recent quarters, higher than industry average.
→EBITDA per ton was about INR 1,100 currently, with potential to reach INR 1,200 to INR 1,300, though price and demand are market-driven and unpredictable.
→The firm is confident of stable pricing and demand returning, supporting distributable profits for the year.
→Expansion in UAE is funded by internal cash, expected to contribute to consolidated earnings positively.
→Dividend payouts are expected to increase incrementally, with cash reserves being prudently managed.
→Overall, EPS at standalone level ranges INR 966-1,105, with consolidated EPS showing higher profitability owing to UAE operations.

Get access to all 5 sections — revenue, margin, fundraise, orderbook, and capex — for Shree Cement Ltd and 1,400+ other companies.

Fundraise plans

→There is no explicit mention of any new fundraising through debt or equity in the provided transcript.
→Ashok Bhandari mentions having ample physical and financial resources for capex, indicating reliance on internal funds.
→The company is maintaining significant cash reserves ("dry powder") for flexibility and future needs.
→Capex plans for FY26-FY28 are approximately INR 3,000 crores per year, funded mainly by internal cash flows.
→For UAE expansion, the AED 110 million capex is fully funded by available cash in UAE operations.
→Management emphasizes prudence in capital allocation and has addressed dividend payout questions but does not indicate plans for raising external capital at this time.

Order book

The provided pages from "2998.pdf" do not contain specific information about the current or expected order book or pending orders for Shree Cement Limited. The discussion primarily focuses on: - Volume growth and market share in cement sales. - Capacity expansion plans in UAE and India. - Pricing strategy emphasizing value over volume. - Financial performance including EBITDA and realizations. - Capex funding and cash strategy. - Renewable energy initiatives and operational efficiencies. If you need detailed data on order book or pending orders, it may not be available in this document or section specifically. Please provide additional pages or specify if you want me to check the whole document for this.

Capex plans

Yes

→UAE Expansion: Capex of approximately AED 110 million for new 3 million ton cement mill, funded fully by cash available in UAE. (Page 13)
→India Capex: Estimated INR 3,000 crores for FY 26-27 and similar amount for FY 27-28. Some spillover to FY 28-29 expected depending on demand and capacity utilization. (Page 7)
→Commissioning: Recently commissioned 3.65 million tons clinkerisation unit at Jaitaran, Rajasthan; 3 million ton cement mill at Jaitaran expected shortly; Integrated 3 million ton project at Kodla, Karnataka nearing completion for commissioning soon. (Page 3)
→Strategic Approach: Capacity expansion to maintain or grow market share, especially in North India, with flexibility depending on market conditions. (Page 7)
→Green Power: Commissioned 20 MW solar plant, total green power capacity now 612 MW, aiming for eco-friendly growth. (Page 3)

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