Kolkata: Shree Cements is confident of a sharp recovery in cement volumes in the January–March quarter of the current financial year. Speaking during its Q3 analyst call, the company said it expects sales volumes of 9 to 9.5 million tonnes in Q4, supported by higher infrastructure activity and increased government spending towards the end of the fiscal year.
The management said that the Centre’s focus on utilising infrastructure budgets before March 31 should lead to better demand, especially from roads, housing, and other public projects. After a year where pricing was a key concern, the company is now shifting its focus towards higher capacity utilisation as demand improves.
Aggressive push in ready-mix concrete
Alongside cement volumes, Shree Cements is stepping up its presence in the ready-mix concrete (RMC) segment. The company plans to expand its RMC network from the current 19 plants to 45 plants over the next six to eight months.
Management said the RMC expansion is part of a long-term strategy to move higher in the construction value chain. Nearly 45 percent of the cement used in these RMC plants is sourced internally, which helps the company improve overall utilisation of its cement capacity.
Capacity expansion and capex plans
Shree Cements expects its total cement capacity to touch 72 million tonnes by March 2026. For the next financial year, the company has planned a baseline capital expenditure of Rs 500 crore. Most of this spending will go towards RMC expansion and infrastructure projects such as railway sidings, which help reduce logistics costs.
The company maintained its long-term target of 80 million tonnes capacity, but clarified that future expansions will be demand-led to avoid idle assets.
Strong balance sheet and cost control
On costs, Shree Cements continues to remain among the most efficient players in the industry. Fuel costs stand at Rs 1.56 per kilo calorie. Renewable energy now accounts for 61% of total power consumption, backed by 634 MW of green power capacity.
The company remains debt-free, with cash reserves of around Rs 6,000 crore. It also indicated that the dividend payout for FY26 could be higher than last year.
