Focus on higher realisation improves Shree Cement's earnings outlook

While its net profit fell by 17% in the March quarter, the company is looking at high-price segments and premium products to drive profitability

Despite a miss in the March 2019 quarter (Q4) performance, cement and power producer Shree Cement's stock hit a 52-week high at Rs 20,332.9 on Monday on the BSE, before closing with over 5 per cent gains at Rs 20,300. While part of the gains were led by the Street's exuberance following the exit polls, the management's aim to improve realisation and operating profitability, amid volatile cement prices, turned investor sentiment positive.

In Q4, even as cement volumes were up 13.4 per cent year-on-year (YoY) at 7.3 million tonnes and power unit sales by 10 per cent, Shree Cement’s 17 per