Shree Cement shares traded in the red on November 8, even though the cement maker reported a robust set of numbers for the second quarter of FY24. The company's consolidated net profit soared twofold from last year to ₹446.62 crore, aided by strong sales volume and improved operational metrics.

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Shree Cement's sales volume for the quarter rose 10% to 8.20 million tonnes from 7.46 million tonnes.

“It’s (volume growth) at about 13-14% in the first half; the second half will be a little lower. So, overall, the volume growth will be at least 12%. It can be a little higher too,” Chairman HM Bangur told CNBC-TV18 in a post-earnings chat. For the next fiscal 2024-25, he expects a minimum volume growth of 12%.

Even as the company's standalone revenue from operations increased 21.3% YoY to ₹4,584.6 crore and earnings before interest, taxes, depreciation, and amortisation or EBITDA jumped 66.2% to ₹869.6 crore, Shree Cement

While capacity is a constraint at the moment, Bangur said new capacities will be added within the next two years. “By the end of FY24, our capacity will go up to 56mt (million tonne) from the current 50mt. Next year, it will be about 62mt. So, in the next two years, 12mt capacity will be added,” he said.

In the September quarter, the Kolkata-based firm's capacity utilisation improved from 65% to 71% on a YoY basis.

The board of Shree Cement has approved the setting up of a brownfield cement grinding capacity of 3.40mt per annum at its existing facilities in Chhattisgarh with an estimated capital expenditure of ₹550 crore. This project is expected to be completed by September 2025.

Bangur also told CNBC-TV18 that the firm is not looking at inorganic growth unless it’s “really good”.

On the income tax (I-T) department’s survey action at five locations of Shree Cement in Rajasthan, Bangur said, no progress has been made so far. “Things are at where they were in the last quarter.”

The company's shares were trading around 1.5% lower at ₹26,306 on the NSE. They have gained more than 7% over the last six months and around 13% over the last 12 months.

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(Edited by : Shweta Mungre)