Economy & Market
Shree Cement performs well with revenue growth
Shree Cement, one of the largest producers of cement in north India, has captured the imagination of most analysts with a capacity of 12 million tonne a year.
The company is one of the few to have seen an earnings upgrade, after it surprised the Street with a good set of numbers in the quarter ended June. Since the company is changing its financial year from one ending March to one ending June, the company's FY12 has seen five quarters.
For the quarter ended June (Q5FY12), the company saw overall revenue growth of 43 per cent year-on-year to Rs 1,455 crore. Analysts estimate cement volumes to have increased 34 per cent to 3.24 million tonne in the quarter, higher than the industry's growth rate.
Not only did the company surprise on sales and volume growth, it also sprang a surprise in terms of realisations. In the key markets Shree Cement operates in, realisations improved six per cent sequentially and 12 per cent annually.