Shree Cements in line with expectation

Shree Cements in line with expectation
16 August 2010

Shree Cement’s (SCL) 1QFY11 EBIDTA was down 32 per cent YoY at INR2.9bn (US$61.8m), in line with India Infoline News Service’s (IINS) forecast. Net sales increased two per cent YoY to INR9.4bn – higher than II’s expectation, on account of trading in power. 

PAT was lower than our estimate on account of higher-than-expected depreciation and interest expenses.

Cement and clinker volumes declined five per cent YoY with the increase in competition in the northern region, and sluggish demand. 

IINS expect the next two quarters to be challenging, as more production capacity from competitors stabilises and demand in the northern region is likely to remain sluggish.

Furthermore, with petcoke prices continuing to increase, IINS expect power and fuel cost to increase. IINS cut its FY11 EBIDTA estimate by 15 per cent.
Published under Cement News