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Shree Cement Q4 profit slips 16% as high costs put pressure

Despite lower net profits, the company announced a dividend of Rs 60 per share

Despite lower net profits, the company announced a dividend of Rs 60 per shareAdobe Stock

Shree Cement' s Q4 FY25 results were a bit of a mixed bag.

The cement maker managed to grow its revenue modestly, up 3.3 per cent year-on-year to Rs 5,240 crore. But that wasn't enough to offset a surge in costs. Net profit came in at Rs 556 crore, down 16 per cent from Rs 662 crore last year.

Investors weren't worried, though. A dividend of Rs 60 per share sweetened the deal, and the operational performance wasn't all bad.

Shree Cement's Q4 FY25 results snapshot

Here's how the Q4 FY25 figures stack up.

Metric Q4 FY25 Q4 FY24 Change
Revenue Rs 5,240 cr Rs 5,073 cr 3.30%
Net profit Rs 556 cr Rs 662 cr 16%
EBITDA Rs 1,531 cr Rs 1,465 cr 4.50%
EBITDA margin 29.20% 28.90% Flat
Total expenses Rs 4,648 cr Rs 4,438 cr 4.70%

While volumes and realisations held up well, the cost side of the business told a different story. Power, fuel and freight costs climbed — and that's what dragged down the net.

Shree Cement has declared a final dividend of Rs 60 per share, in addition to the interim Rs 50 already paid. That takes the total payout to Rs 110 for the year, which is not bad for long-term holders.

Value Research Ratings

Shree Cement is rated four out of five stars as per Value Research Online.

  • Quality: 8/10
  • Growth: 6/10
  • Valuation: 4/10
  • Momentum: 10/10
Solid business. Some growth. But not cheap.

What should investors make of Shree Cement's Q4 results?

Margins held up. Revenues grew. But profits shrank. That's the short version.

The good news? The cement cycle remains on a firm footing, and infrastructure demand is expected to stay strong. The not-so-good news? Rising input costs may continue to crimp profitability in the short term.

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Disclaimer: This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.

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