Shree Cement shares drop up to 3.6% after Q1 profit misses estimates on West Asia-driven cost pressures
AI Market Summary
Shree Cement's Q1 profit and EBITDA missed estimates as West Asia-related fuel and raw material inflation sharply compressed margins, triggering an intraday share drop. The report highlights renewed sensitivity of energy-intensive manufacturers to geopolitical-driven input costs despite healthy demand and volume growth. Near-term focus shifts to cost pass-through and fuel-price trends, with implications for broader construction-materials sentiment.
Impact level
● Low
Affected assets
NCCO7241NATGAS2USD/USDT-0.29%
AI Insight · NCCO7241NATGAS2USD/USDTAI Insight
▼ Bearish
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India’s Shree Cement reported a 29.2% year-on-year fall in consolidated net profit to 438 crore rupees for FY2024 Q1 ended June, well below the market estimate of 499 crore rupees. EBITDA declined 12.6% to 1,074.4 crore rupees, while the EBITDA margin narrowed to 19.1% from 24.8%. The company attributed the cost pressure to higher fuel and raw material prices stemming from the West Asia geopolitical crisis. Following the results, the stock fell as much as 3.6% intraday.
