KOLKATA, Feb 8: Shree Cements expects a strong rebound in cement volumes in the fourth quarter of the current financial year, aided by a pick-up in infrastructure activity and higher government spending towards the fiscal year-end, the management said in a Q3 analyst concall.
The company is targeting sales volumes of 9-9.5 million tonnes in the January-March quarter.
It noted that the Centre’s push to utilise infrastructure allocations by March 31 is likely to support demand.
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While pricing remained a focus in the earlier part of the year, the company is now looking to ramp up capacity utilisation as volumes improve, an official said.
Separately, Shree Cements outlined an aggressive expansion plan for its ready-mix concrete (RMC) business, with the company aiming to scale up its RMC footprint to 45 plants from the current 19 units over the next six to eight months.
The management said the RMC push is part of a broader strategy to move up the construction value chain, adding that around 45 per cent of the cement consumed at these plants is sourced internally, supporting higher utilisation levels.
On capacity expansion, the company said its total cement capacity is expected to reach 72 million tonnes by March 2026. For the next financial year, Shree Cements has earmarked a baseline capital expenditure of Rs 500 crore, primarily towards RMC expansion and infrastructure projects such as railway sidings.
The company reiterated its long-term capacity target of 80 million tonnes but said future expansions would be calibrated in line with demand conditions to avoid idle capital.
On the operational front, Shree Cements said it continues to maintain industry-leading cost metrics, with fuel costs at Rs 1.56 per kilo calorie. Green energy accounts for 61 per cent of its total power consumption, supported by a renewable capacity of 634 MW.
The company remains debt-free and has cash reserves of around Rs 6,000 crore, the management said, adding that the company expects that the total dividend payout for the current fiscal may be higher than that of the previous year. (PTI)
