X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Shree Cem: Profits Up Multi-fold on Strong Cement Sales, Lower Fuel Costs - Views on News from Equitymaster
MidCapSelect
  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  
  • Home
  • Outlook Arena
  • Aug 19, 2016 - Shree Cem: Profits Up Multi-fold on Strong Cement Sales, Lower Fuel Costs

Shree Cem: Profits Up Multi-fold on Strong Cement Sales, Lower Fuel Costs
Aug 19, 2016

Shree Cement has announced its financial results for the quarter ended June 2016. The company's sales and net profit increased by 28.6% YoY and 387.6% YoY respectively during the quarter. Here is our analysis of the results:

Performance Summary
  • Standalone sales increased by 28.6% YoY during the quarter ended June 2016 driven by healthy growth in the cement segment.
  • Operating profit increased by 107.8% YoY; operating margins expanded from 18.3% in 1QFY16 to 29.6% in 2QFY16.
  • Both cement and power segment witnessed substantial jump in profitability driven by sharp decline and power and fuel costs. Freight costs also subsided on a year-on-year basis.
  • Other income more than doubled during the quarter. At the same time, non-operating expenses were under control.
  • At the bottomline level, net profits zoomed up 387.6% YoY during the quarter.
  • Net profit margins improved to 20.6% in 1QFY17 from 5.4% in the corresponding quarter of the previous year.

    Standalone Financial Performance Snapshot
    (Rs m) 1QFY16 1QFY17 Change
    Sales** 19,193 24,678 28.6%
    Expenditure 15,676 17,370 10.8%
    Operating profit (EBITDA) 3,516 7,308 107.8%
    EBITDA margin 18.3% 29.6%
    Other income 444 979 120.5%
    Depreciation 2,383 1,540 -35.3%
    Finance costs 264 276 4.7%
    Profit before tax & exceptional items 1,314 6,471 392.5%
    Exceptional gains/(losses) (240) 0
    Profit before tax 1,074 6,471 502.5%
    Tax 33 1,394 4136.5%
    Effective tax rate 3.1% 21.5%
    Profit after tax 1,041 5,077 387.6%
    Net profit margin 5.4% 20.6%
    No of shares (m) 34.8
    Diluted EPS (Rs)* 276
    P/E (times)* 61.5

    *trailing twelve month earnings
    **Sales are inclusive of excise duty

To Read the Full Story, Subscribe or Sign In



DISCLOSURES UNDER SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014
INTRODUCTION:
Equitymaster Agora Research Private Limited (hereinafter referred to as "Equitymaster"/"Company") was incorporated on October 25, 2007. Equitymaster is a joint venture between Quantum Information Services Private Limited (QIS) and Agora group. Equitymaster is a SEBI registered Research Analyst under the SEBI (Research Analysts) Regulations, 2014 with registration number INH000000537.

BUSINESS ACTIVITY:
An independent research initiative, Equitymaster is committed to providing honest and unbiased views, opinions and recommendations on various investment opportunities across asset classes.

DISCIPLINARY HISTORY:
There are no outstanding litigations against the Company, it subsidiaries and its Directors.

GENERAL TERMS AND CONDITIONS FOR RESEARCH REPORT:
For the terms and conditions for research reports click here.

DETAILS OF ASSOCIATES:
Details of Associates are available here.

DISCLOSURE WITH REGARDS TO OWNERSHIP AND MATERIAL CONFLICTS OF INTEREST:
  1. 'subject company' is a company on which a buy/sell/hold view or target price is given/changed in this Research Report
  2. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any financial interest in the subject company.
  3. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have actual/beneficial ownership of one percent or more securities of the subject company at the end of the month immediately preceding the date of publication of the research report.
  4. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any other material conflict of interest at the time of publication of the research report.
DISCLOSURE WITH REGARDS TO RECEIPT OF COMPENSATION:
  1. Neither Equitymaster nor it's Associates have received any compensation from the subject company in the past twelve months.
  2. Neither Equitymaster nor it's Associates have managed or co-managed public offering of securities for the subject company in the past twelve months.
  3. Neither Equitymaster nor it's Associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  4. Neither Equitymaster nor it's Associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  5. Neither Equitymaster nor it's Associates have received any compensation or other benefits from the subject company or third party in connection with the research report.
GENERAL DISCLOSURES:
  1. The Research Analyst has not served as an officer, director or employee of the subject company.
  2. Equitymaster or the Research Analyst has not been engaged in market making activity for the subject company.
Definitions of Terms Used:
  1. Buy recommendation: This means that the subscriber could consider buying the concerned stock at current market price keeping in mind the tenure and objective of the recommendation service.
  2. Hold recommendation: This means that the subscriber could consider holding on to the shares of the company until further update and not buy more of the stock at current market price.
  3. Buy at lower price: This means that the subscriber should wait for some correction in the market price so that the stock can be bought at more attractive valuations keeping in mind the tenure and the objective of the service.
  4. Sell recommendation: This means that the subscriber could consider selling the stock at current market price keeping in mind the objective of the recommendation service.
Feedback:
If you have any feedback or query or wish to report a matter, please do not hesitate to write to us.

Become A Smarter Investor In
Just 5 Minutes

Multibagger Stocks Guide 2017
Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

SHREE CEMENT SHARE PRICE


Aug 17, 2017 (Close)

TRACK SHREE CEMENT

  • Track your investment in SHREE CEMENT with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

SHREE CEMENT 8-QTR ANALYSIS

Detailed Quarterly Results With Charts

COMPARE SHREE CEMENT WITH

MARKET STATS