Shree Cement To Lower Prices By Rs 5-10 A Bag On Fuel Excise Duty Cut
Shree Cement expects cost savings worth at least Rs 50 a tonne in Q2.
Shree Cement Ltd. will cut prices by another Rs 5-10 a bag to pass on the benefit of an excise duty in fuel, according to its managing director.
A demand slowdown in May due to early monsoons and lower working hours amid heat intensity have already led to price cuts in the range of Rs 5-10 a bag across regions, HM Bangur said in an interview with BQ Prime.
Still, the cement maker doesn’t see its margin coming under pressure. Bangur expects cost savings worth at least Rs 50 a tonne in the quarter ended September as the company shifts to Russian coal.
Shree Cement has underperformed larger peers in the quarter ended March, with its Ebitda per tonne declining by Rs 126 a tonne sequentially, while others saw an increase. That was mainly on account of higher power and fuel costs, driven by higher prices of imported coal. According to a Jefferies report, Shree Cement’s volume growth at 3.3% for FY22 was below the industry’s estimated growth rate of 8%.
Watch the full interview here: