Shree Cement Q2 profit down
<p style="text-align: justify;">Shree Cement's second quarter profit is seen falling 1 percent year-on-year to Rs 290 crore due to weak operational performance.</p>
Revenue during the quarter is likely to increase 9.4 percent to Rs 2,195 crore compared with Rs 2,007 crore in year-ago, according to
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Nov 8, 2017 4:48 AM
Shree Cement's second quarter profit is seen falling 1 percent year-on-year to Rs 290 crore due to weak operational performance.
Revenue during the quarter is likely to increase 9.4 percent to Rs 2,195 crore compared with Rs 2,007 crore in year-ago, according to average of estimates of analysts polled by CNBC-TV18.
Topline growth may be led by cement but power business may continue to struggle. Higher freight cost in cement and lower off take in power may continue to persist, analysts feel.
Cement volumes may grow 10 percent YoY at 5.03 million tonne, led by favourable demand from North market (contributes 75 percent to total volume).
Capacity ramp up in east, rising share of volumes in East India and higher demand in the east may also boost cement volumes.
Operating profit is seen falling 33 percent to Rs 510 crore and margin may shrink 1,450 basis points to 23.2 percent year-on-year due to contraction in cement EBIT on higher pet coke prices.
Benefit of higher cement volumes and realisations may offset by higher input costs.
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