(Reuters) – Shree Cement, India’s third-largest cement maker by market capitalisation, reported a bigger-than-expected fourth-quarter profit on Tuesday as lower cement prices helped boost volumes.
Cement makers usually report strong volumes in the March-quarter as they push down prices to clear fiscal year-end inventory backlogs. Analysts had expected lower fuel costs to help offset the dip in prices.
Shree Cement’s profit for the quarter ended March 31 rose to 6.62 billion rupees ($79.3 million), beating street expectations of 6.20 billion rupees, according to LSEG data. The company had reported a profit of 5.46 billion rupees a year earlier.
The company’s total sales volumes increased 8% to 9.53 million tonnes during the quarter, leading to a 6.6% rise in revenue to 51.01 billion rupees.
Peers UltraTech Cement, ACC and Dalmia Bharat have also reported better-than-expected quarterly profit, aided by volume growth.
Shree Cement on Tuesday recommended a final dividend of 55 rupees per share.
Shares of Shree Cement have fallen about 9.17% so far this year vs a 15.23% climb in the Nifty infrastructure index.
India’s ongoing general elections are expected to dampen demand for cement in the first quarter of this fiscal year as infrastructure and real estate companies slow down construction activity.
($1 = 83.5023 Indian rupees)
(Reporting by Anisha Ajith in Bengaluru; Editing by Mrigank Dhaniwala)
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