Shree Digvijay Cement reports 15% revenue growth in 4QFY23

India’s Shree Digvijay Cement Co Ltd (SDCC) has reported a 15 per cent YoY increase in revenue in the 4QFY22-23, ending 31 March 2023. Revenue for the quarter came in at INR1952m (US$23.9m), up from INR1692m in the same period a year earlier. Over the same period, EBITDA advanced from INR305.9m to INR410.6m, while profit after tax expanded from INR128.9m to INR244.2m. The company sold 3.34Mt of cement over the quarter, up on the 3.25Mt recorded in the 4QFY21-22. 

“Despite very high cost of coal which has impacted the margins of cement industry, SDCC performed well by improving plant performance and keeping the cost under control. The coal prices are now softening and expected to soften further, which will reduce the cost of production. Encouraged by such good performance, the board of directors have recommended a higher final dividend of INR2.5 per share,” said Anil Singhvi, executive chairman of SDCC.

For FY22-23, revenue came in at INR7248.7m, up from INR6293.4m in the previous year. EBITDA over the same period fell from INR1210.6m to INR1076m, while profit after tax improved slightly from INR552.9m to INR577.1m. Over the 12-month period, the company sold more than 12.5Mt of cement, its highest ever volume of cement. It also obtained Environmental Clearance (EC) from the Ministry of Environment, Forest and Climate Change for a 3Mta capacity expansion.

Rajeev Nambiar, managing director of SDCC, said, “Another impressive year for SDCCL in spite of challenges on cost and intense market competition. Debottlenecking and asset optimisation initiatives led to long term gains which are visible in the performance. Combined with highest ever blended and special products sales led to the consolidation of top line growth and profitability. Beginning of operations of SDCCL Logistics and grant of EC for expansion adds newer opportunities for future business growth.”