Shree Cement misses profit estimates on low prices and construction halts in North India
Shree Cement missed profit estimates today as construction halts in North India hit demand. Lower prices and a one-time labor charge also impacted results.
Insights:
Shree Cement has reported its financial results for the quarter ended December, with both revenue and net profit falling significantly short of market expectations. On February 6, the company announced that its revenue for the period stood at 44.16 billion rupees, while net profit reached 2.79 billion rupees. These figures missed consensus estimates provided by analysts, who had projected revenue of 48.99 billion rupees and a net profit of 4.06 billion rupees for the quarter.
The company attributed the performance shortfall to a combination of operational and accounting factors. Management cited lower cement prices across India 
IN and dull demand in North India as primary drivers. The regional demand weakness followed construction halts mandated by Delhi-National Capital Region authorities due to high pollution levels. Furthermore, the company recorded a one-time charge of 560 million rupees related to the new labour codes introduced by the Indian government.
IN and dull demand in North India as primary drivers. The regional demand weakness followed construction halts mandated by Delhi-National Capital Region authorities due to high pollution levels. Furthermore, the company recorded a one-time charge of 560 million rupees related to the new labour codes introduced by the Indian government.
