Shree Cement's superior Q2 show will help sustain premium valuations

With the company's cost leadership being maintained, it reported much better per tonne operating profit

Shree Cement’s superior showing for the July-September quarter (second quarter, or Q2) topped the strong performance posted by most large-cap cement players.

On sales volume, Shree Cement posted a stronger growth of 14 per cent year-on-year (YoY) to 6.53 million tonnes (mt). Sales volume surged 36 per cent over the lockdown-impacted April-June quarter.

Earlier, UltraTech, though a pan-Indian player, on a much higher base had reported an increase of 8 per cent in volume to 18.52 mt for domestic operations.

Ambuja Cements (more comparable to Shree Cement) had seen similar growth in volume to 5.67 mt, while ACC reported marginal increase to 6.49