InvestorQ : How were the quarterly result numbers of Shree Cements for Q2?
vaishnavi mhatre made post

How were the quarterly result numbers of Shree Cements for Q2?

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vidhya Laxmi answered.
1 month ago
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For the quarter ended Q2FY23 i.e. September 2022 quarter; Shree Cement reported 19.7% higher sales revenues at Rs4,038 crore. However, short term pressure was visible in sequential revenues down -8.54%. Current ratio fell from 1.68 to 1.43 while the inventory turnover ratio fell from 7.12 times to 5.57 times on a yoy basis. Working capital pressure is also visible in debtors falling from 25.12X to 20.20X on yoy basis. Debt/equity ratio was flat but there is weakening of coverage ratios. Interest coverage ratio fell from 18.86 to 10.06 yoy while debt service coverage ratio or DSCR fell from 5.22 to 2.64 yoy. Here is a gist.

 

Shree Cements

 

 

 

 

Rs in Crore

Sep-22

Sep-21

YOY

Jun-22

QOQ

Total Income (Rs cr)

₹ 4,038

₹ 3,373

19.70%

₹ 4,415

-8.54%

Net Profit (Rs cr)

₹ 183

₹ 563

-67.42%

₹ 280

-34.40%

 

 

 

 

 

 

Diluted EPS (Rs)

₹ 50.81

₹ 155.99

 

₹ 77.47

 

Net Margins

4.54%

16.68%

 

6.33%

 

 

It was profitability that really disappointed for Shree Cement. PAT for Q2FY23 fell -67.42% to Rs183 crore due to a sharp spike in power, fuel and freight costs. Just look at the numbers to get an idea.  The critical power and fuel costs nearly doubled from Rs727 crore to Rs1,378 crore on a yoy basis. Even freight costs went up from Rs714 crore to Rs868 crore and as a result the operating margins or the OPM fell sharply from 33% to 18% yoy while the net margins fell from 16.68% to 4.54% on a yoy basis. Even on sequential basis, PAT margins tapered by 179 basis points. Power and fuel costs are really pinching hard.

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