Shree Cement, like other players in the Indian cement sector, reported an improved performance in the March 2007 quarter, aided by higher cement prices and improved despatches (reports The Business Standard). As a result, operating profit grew 110 per cent y-o-y in Q4 FY07 on a net sales growth of 67 per cent. Its operating profit margin also improved 930 basis points YoY to 45.3 per cent in the last quarter.
Shree Cement’s despatches were at 1.26 million tonnes in Q4 FY07 compared with 0.92 million tonnes a year earlier. Its realisations were estimated at Rs 3,002 per tonne in the last quarter, a growth of 21.9 per cent y-o-y. ACC’s realisations also grew an estimated 26.8 per cent y-o-y to Rs 3,317 a tonne in the last quarter.
The underlying concern for cement stocks is the industry’s earlier decision to hold prices for a year. As a result, the stock has dipped 18.3 per cent during the past three months compared with 1.6 per cent fall in the Sensex.