Core business eases power segment pain for Shree Cement in Dec quarter

Cost controls, presence in profitable markets increase earnings

Muted performance by the power division was responsible for a lower-than-expected December quarter (Q3) performance by Shree Cement. However, its cement division performed better, offsetting some of the pain in the power business. Higher exposure to the more profitable North India region helped the company report better realisations than other cement peers. Profitability per tonne reported by the company at Rs 1,365 was much higher than UltraTech’s and ACC’s at Rs 1,008 and Rs 697, respectively.

UltarTech and ACC, being pan-Indian players, saw a bigger impact of sluggish all-India cement prices, with West, South, and East India witnessing a decline by