Shree Cement tumbles after Q1 PAT slips 14% to Rs 330 cr

Shree Cement declined 4.10% to Rs 21,470 after consolidated net profit fell 13.6% to Rs 330.35 crore on 24.9% drop in net sales to Rs 2,480.14 crore in Q1 June 2020 over Q1 June 2019.

Profit before tax (PBT) slipped 11.8% to Rs 442.65 crore in Q1 June 2020 over Q1 June 2019. Current tax expense for the quarter skid 12% to Rs 125.87 crore as against Rs 143.07 crore in Q1 June 2019. The Q1 result was declared after market hours yesterday, 10 August 2020.

During the quarter ended 30 June 2020, Shree Cement's Indian operations were partially affected due to lockdown announced on account of COVID-19 pandemic by State and Central Government. The cement manufacturing major has considered the possible impact of COVID-19 in preparation of the financial results. The company believes that pandemic is unlikely to impact on the recoverability of the carrying value of its assets as at 30 June 2020. As the situation of pandemic is still continuing, the extent to which the same will impact company's future financial results is currently uncertain and will depend on further developments.

On the technical front, the stock's RSI (relative strength index) stood at 55.958. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading between its 50-day moving average (DMA) placed at 22,026.40 and its 200-day moving average (DMA) placed at 21,070.56.

Shree Cement is primarily an Indian cement manufacturer. It also produces and sells power under the name Shree Power and Shree Mega Power.

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