Shree Cement’s profit for the July to September quarter shrank to Rs 189.6 crore as against CNBC-TV18’s poll expectations of Rs 231 crore. The cement maker’s net profit declined over 67 percent from the year-ago period when it was Rs 578 crore, as per the company’s financial results for the second quarter of the fiscal released on Friday.

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The cement maker's revenue for the three-month period ended September 30 rose 17.9 percent on an annual basis to Rs 3780.9 crore. This, however, is still below analysts' projections of Rs 3930 crore.

Shree Cement’s margin came in at 13.8 percent against poll estimates of 15.1 percent. This compares to the 28 percent margin in the second quarter of the previous financial year. Analysts had expected margin to be impacted by a sharp increase in costs and weak realisations sequentially.

Total expenses were higher at Rs 3,956.9 crore compared to Rs 2,798.3 crore with power and fuel cost at Rs 1,377.79 crore, up from Rs 726.75 crore a year ago, the company said in a regulatory filing.

In a separate filing, Shree Cement said its board has accepted the resignation of its long-serving Chairman Benu Gopal Bangur due to his "advanced age" and will now become Chairman Emeritus with effect from October 15, 2022.

The company further said its board has also approved the elevation of Managing Director Hari Mohan Bangur as its chairman, effective October 15, 2022, for the remaining period of his current tenure up to March 31, 2026, subject to shareholders' approval.

Prashant Bangur has been appointed Vice Chairman of the company and Neeraj Akhoury will serve as Managing Director.

Also Read: Shree Cement expects demand to grow 8-10% CAGR for next 4 years

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First Published:Oct 14, 2022 9:54 AM IST