SHREE CEMENT 2024-25 Annual Report Analysis

Tue, 15 Jul

SHREE CEMENT has announced its results for the year ended March 2025. Let us have a look at the detailed performance review of the company during FY24-25.

SHREE CEMENT Income Statement Analysis

• Operating income during the year fell 5.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 12.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 20.4% in FY25 as against 22.0% in FY24.
• Depreciation charges increased by 58.5% and finance costs decreased by 20.7% YoY, respectively.
• Other income declined by 4.5% YoY.
• Net profit for the year declined by 53.1% YoY.
• Net profit margins during the year declined from 11.7% in FY24 to 5.8% in FY25.

SHREE CEMENT Income Statement 2024-25

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Net Sales	Rs m	204,038	192,828	-5.5%
Other income	Rs m	6,231	5,951	-4.5%
Total Revenues	Rs m	210,269	198,779	-5.5%
Gross profit	Rs m	44,918	39,282	-12.5%
Depreciation	Rs m	18,973	30,068	58.5%
Interest	Rs m	2,583	2,050	-20.7%
Profit before tax	Rs m	29,592	13,115	-55.7%
Tax	Rs m	5,630	1,877	-66.7%
Profit after tax	Rs m	23,962	11,238	-53.1%
Gross profit margin	%	22.0	20.4
Effective tax rate	%	19.0	14.3
Net profit margin	%	11.7	5.8

Time Sensitive: Access Our 4 Foundational Stock Recommendation Services at 75% OFF

SHREE CEMENT Balance Sheet Analysis

• The company's current liabilities during FY25 down at Rs 58 billion as compared to Rs 61 billion in FY24, thereby witnessing an decrease of -6.1%.
• Long-term debt stood at Rs 7 billion as compared to Rs 7 billion during FY24, a growth of 1.9%.
• Current assets fell 1% and stood at Rs 121 billion, while fixed assets rose 3% and stood at Rs 156 billion in FY25.
• Overall, the total assets and liabilities for FY25 stood at Rs 277 billion as against Rs 273 billion during FY24, thereby witnessing a growth of 1%.

SHREE CEMENT Balance Sheet as on March 2025

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Networth	Rs m	207,029	215,378	4.0
Current Liabilities	Rs m	61,278	57,561	-6.1
Long-term Debt	Rs m	7,131	7,266	1.9
Total Liabilities	Rs m	272,953	276,879	1.4
Current assets	Rs m	122,122	121,024	-0.9
Fixed Assets	Rs m	150,831	155,856	3.3
Total Assets	Rs m	272,953	276,879	1.4

SHREE CEMENT Cash Flow Statement Analysis

• SHREE CEMENT's cash flow from operating activities (CFO) during FY25 stood at Rs 49 billion, an improvement of 47.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY25 stood at Rs -37 billion, an improvement of 162.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY25 stood at Rs -13 billion, an improvement of 24% on a YoY basis.
• Overall, net cash flows for the company during FY25 stood at Rs -1 billion from the Rs 2 billion net cash flows seen during FY24.

SHREE CEMENT Cash Flow Statement 2024-25

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-24	Mar-25
Cash Flow from Operating Activities	Rs m	33,475	49,203	47.0%
Cash Flow from Investing Activities	Rs m	-14,185	-37,276	-
Cash Flow from Financing Activities	Rs m	-17,101	-12,963	-
Net Cash Flow	Rs m	2,196	-1,019	-

Current Valuations for SHREE CEMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 311.5, an decline from the EPS of Rs 664.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 30,985.6, stands at 99.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 5.8 times.
• The company's price to cash flow (P/CF) ratio stood at 23.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Sales per share (Unadj.)	Rs	5,655.2	5,344.5
TTM Earnings per share	Rs	664.1	311.5
Diluted earnings per share	Rs	664.1	311.5
Price to Cash Flow	x	21.6	23.9
TTM P/E ratio	x	38.7	99.5
Price / Book Value ratio	x	4.6	4.6
Market Cap	Rs m	961,757	987,082
Dividends per share (Unadj.)	Rs	105.0	110.0

Ratio Analysis for SHREE CEMENT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY25, from 2.0x during FY24. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 7.4x during FY25, from 12.5x during FY24. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 5.2% during FY25, from 11.6% during FY25. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 6.8% during FY25, from 15.0% during FY24. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 4.8% during FY25, from 9.7% during FY24. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Current ratio	x	2.0	2.1
Debtors’ Days	Days	2	3
Interest coverage	x	12.5	7.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.7	4.8
Return on equity	%	11.6	5.2
Return on capital employed	%	15.0	6.8

To see how SHREE CEMENT has performed over the last 5 years, please visit here.

SHREE CEMENT Share Price Performance

Over the last one year, SHREE CEMENT share price has moved up from Rs 27,669.2 to Rs 30,985.6, registering a gain of Rs 3,316.4 or around 12.0%.

Overall, the S&P BSE SENSEX is up 3.2% over the year.

(To know more, check out historical annual results for SHREE CEMENT and quarterly results for SHREE CEMENT)