Dividend-Paying Stocks: Shree Cement Ltd, a large-cap cement company, turns ex-dividend today and has announced a final dividend of 450 per cent. The board of directors of the company on the date of filing to BSE, i.e. May 21, 2022 has approved the final dividend, the board has stated, “Board also recommended final dividend @ 45/- per equity share of Rs 10. each for the year ended March 31, 2022 subject to approval of the members at the ensuing Annual General Meeting of the Company.” The investors should note that the ex-dividend date is July 13, 2022, and the record date is July 14, 2022.
Shree Cement has maintained a good track record of dividends. It has declared 36 dividends since, out of which 18 are final dividends including the recent one, 17 are interim dividends, and 1 special dividend. In May 2022, for March and Ending 2022, the company declared a final dividend of 450 per cent amounting to Rs 45 per share. Also, earlier this, it has declared an Interim Dividend of 450 per cent amounting to Rs 45 per share (RD Revised).
It came into existence in 1979. Its operations span across India and the UAE with 4 integrated plants in India, 1 in UAE and 9 Grinding Units. Shree Cement was also among the industry pioneers for the use of alternate fuel resources in the production of cement and today we have the highest installed capacity of Waste Heat Recover Power plants in the world, second only to China.
Financials
In May this year, the cement manufacturer announced quarterly for the time period of January to March 2022. The company however reported a 5.6 per cent higher profit at Rs 645 crore but, it was 16 per cent lower than the Rs 768 crore profit that the company registered in the fourth quarter of last year.
Shree Cement reported revenue growth of 3.6 per cent at Rs 4,098 crore for the quarter under review against Rs 3,958 in the corresponding quarter of the previous fiscal.
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Prabhudas Lilladher in its first quarter (April-June’ 22) earnings estimates for the Cement sector, said that it expects Shree Cement to report net profit at Rs 721 crore up 9 per cent year-on-year (up 32.3 per cent quarter-on-quarter). Net Sales are expected to increase by 26.3 per cent Y-o-Y (up 6.3 per cent Q-o-Q) to Rs 4,357 crore, according to Prabhudas Lilladher.
Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 6.5 per cent Y-o-Y (up 18.6 per cent Q-o-Q) to Rs 1,079.9 crore, it added.
According to Jeffries, the company’s stock appears to factor in expected FY23 industry-led weakness and the company has a strong focus on green energy, alternate fuels, and logistic savings.
The brokerage house also said that the company eyes a respite from cost inflation from H2FY23. It reiterates an 80 metric tonne per annum capacity by 2030 for the company.
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