Shree Cement Q2 net profit falls 67.5% amid high power and fuel cost

Shree Cement Ltd on Friday reported a 67.5 per cent decline in consolidated net profit to Rs 183.24 crore in the second quarter ended September 2022, impacted by higher power and fuel cost.

The company, which had posted a consolidated net profit of Rs 563.94 crore in the same quarter last fiscal, also said its long-serving Chairman Benu Gopal Bangur has stepped down from the post due to his "advanced age" and will now become Chairman Emeritus.

Gross revenue from operations stood at Rs 5,081.75 crore against Rs 4,219.8 crore in the year-ago period, Shree Cement said in a regulatory filing.

Total expenses were higher at Rs 3,956.9 crore compared to Rs 2,798.3 crore with power and fuel cost at Rs 1,377.79 crore, up from Rs 726.75 crore a year ago, the company said.

In a separate filing, Shree Cement said its board has accepted the resignation of its long-serving Chairman Benu Gopal Bangur due to his "advanced age" and will now become Chairman Emeritus with effect from October 15, 2022.

The company further said its board has also approved the elevation of Managing Director Hari Mohan Bangur as its chairman, effective October 15, 2022, for the remaining period of his current tenure up to March 31, 2026, subject to shareholders' approval.

Further, Joint Managing Director Prashant Bangur will be redesignated as Vice Chairman from October 14, 2022, for the remaining period of his current tenure up to March 31, 2027.

Shree Cement said its board has also approved the appointment of Neeraj Akhoury as its Managing Director with effect from October 14, 2022, for a five-year term, subject to the approval of the members of the company.