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Shree Cement: A phenomenal quarter - Views on News from Equitymaster

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Shree Cement: A phenomenal quarter

Aug 23, 2012

Shree Cement has announced its financial results for the quarter and fifteen months ended June 2012. During the quarter, the company has reported a rise of 43% YoY and 539% YoY in sales and net profits respectively. Here is our analysis of the results.

Performance summary
  • Revenues rise by 43% YoY during the quarter ended June 2012.
  • Operating profits surges by 86% YoY on account of decline in all cost heads barring freight and forwarding expenses.
  • Other income rises by 103% during the quarter, while depreciation charges decline by 49% YoY.
  • Healthy operating and non-operating performance cause net profits to increase by 539% YoY.

Financial performance snapshot
(Rs m) Apr-Jun 2011 Apr-Jun 2012 Change FY11  FY12^  Change
Sales 10,187 14,553 42.9%  34,535 58,981 70.8%
Expenditure 7,597 9,741 28.2%  25,687 42,524 65.5%
Operating profit (EBDITA) 2,591 4,812 85.7% 8,848 16,458 86.0%
Operating profit margin (%) 25.4% 33.1%   25.6% 27.9%  
Other income 158 322 103.0% 1,251 1,628 30.1%
Depreciation 1,598 818 -48.8% 6,758 8,731 29.2%
Interest 476 480 0.8% 1,754 2,354 34.2%
Exceptional gains/(losses) (83)  (1)   (485) (123)  
Profit before tax 593 3,835 546.4% 1,103 6,878 523.3%
Tax 43 320   (994) 693  
Profit after tax/(loss) 550 3,515 539.0% 2,097 6,185 194.9%
Net profit margin (%) 5.4% 24.2%   6.1% 10.5%  
No. of shares (m)       34.8 34.8  
Diluted earnings per share (Rs)*         161.7  
P/E ratio (x)*         20.9  
*trailing twelve month earnings;
^Company has changed accounting period from 'period ending 31 March' to 'period ending 30 June'.
As such, the current year has been extended by 3 months for accounting purpose.

What to expect?
At the current prices of Rs 3,375 the stock is trading at 20.9 times its trailing twelve month earnings. We shall give a detailed analysis of the quarter results and the outlook on the stock shortly.

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Feb 18, 2019 (Close)


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