India's Shree Cement Q1 earnings misses estimates

Shree Cement

06/08/2024 09:23

BENGALURU, Aug 6 (Reuters) - Shree Cement  NCCL.NS , India's third-largest cement maker by market capitalisation,
reported on Tuesday a first-quarter profit that missed estimates due to lower demand and prices.
    The company said its profit for the quarter ended June 30 stood at 3.18 billion rupees ($37.9 million), missing
analysts' estimates of 5.25 billion rupees, per LSEG data.
    Its revenue from operations fell 2% to 48.35 billion rupees, also missing estimates.
    For further highlights, click : (Full story)
    
    KEY CONTEXT
    General elections in India, coupled with extreme heat conditions during April to June restricted construction
activities, denting sales for cement makers who have been resorting to price cuts amid rising competition.
    While Shree Cement's sales volumes rose 8% to 9.64 million tonnes in the quarter, weak pricing led to lower
realisation. 
    Peer UltraTech Cement also reported first-quarter profit and revenue below estimates.
       
   PEER COMPARISON   
                                   Valuation (next 12     Estimates (next 12               Analysts' sentiment
                                        months)                months)          
                       RIC        PE      EV/EBITDA     Revenue      Profit     Mean      # of      Stock to       Div
                                                        growth %     growth %   rating*   analysts  price          yield
                                                                                                    target**       (%)
 Shree Cement           SHCM.NS    34.30         17.39     8.90        14.95    Buy             16      0.96           0.38
 UltraTech Cement       ULTC.NS    42.40         20.82     9.85        20.11    Buy             34      1.01           0.60
 Ambuja Cements         ABUJ.NS    33.92         18.42     8.45        21.56    Buy             26      0.94           0.31
 ACC                    ACC.NS     20.81         11.16     5.98        3.11     Buy             19      0.85           0.31
 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT
    
 APRIL-JUNE STOCK PERFORMANCE
    
    
-- All data from LSEG
--$1 = 83.9400 Indian rupees

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APRIL-JUNE STOCK PERFORMANCE    https://tmsnrt.rs/3LSyPVh
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 (Reporting by Anisha Ajith in Bengaluru; Editing by Mrigank Dhaniwala)
 ((anisha.ajith@thomsonreuters.com;))