<p>Shree Cement Ltd reported a 43.7 per cent fall in third-quarter profit on Wednesday, missing expectations, as persistently high input and fuel costs triggered by the Russia-Ukraine war weighed on the cement sector.</p>.<p>The Kolkata-based company posted a standalone profit of Rs 277 crore for the quarter ended Dec. 31, compared with Rs 492 crore a year earlier.</p>.<p>Analysts, on average, had expected a profit of Rs 322 crore, according to Refinitiv IBES data.</p>.<p>Total expenses rose 26.8 per cent to Rs 3,846 crore, amid a surge in global oil prices.</p>.<p>Even though prices of key fuel components such as petroleum coke and coal slightly cooled-off in the third quarter, prices remained elevated. Marginal cement price hikes, largely led by the eastern region of the country, failed to offset the surge.</p>.<p>Power and fuel costs, which account for a major part of the cement maker's expenses, jumped 61.3 per cent to 13.03 billion rupees.</p>.<p>The Indian cement sector is betting on the country's investment in infrastructure in the pre-election period to drive up its demand. A 33 per cent jump in allocation for key infrastructure sectors in the Union Budget 2023-24 might also boost cement demand. India is the world's second-largest cement producer.</p>.<p>"Given the government's focus on infrastructure growth in the Union Budget 2023-24,... cement sector is poised for robust growth in coming years," the company said in an exchange filing.</p>.<p>However, the rising input costs led by higher fuel prices may impact margins, the company added.</p>.<p>Gross revenue from operations in the third quarter rose 16.4 per cent to Rs 5,199 crore.</p>.<p>Rivals Ramco Cements, ACC Ltd and Ultratech Cement reported a fall in third-quarter profit on higher costs, while Ambuja Cements reported a profit jump on higher demand.</p>.<p>Shares of the company fell 2.1 per cent to Rs 23,750 after the results. The stock shed 13.7 per cent in 2022.</p>
<p>Shree Cement Ltd reported a 43.7 per cent fall in third-quarter profit on Wednesday, missing expectations, as persistently high input and fuel costs triggered by the Russia-Ukraine war weighed on the cement sector.</p>.<p>The Kolkata-based company posted a standalone profit of Rs 277 crore for the quarter ended Dec. 31, compared with Rs 492 crore a year earlier.</p>.<p>Analysts, on average, had expected a profit of Rs 322 crore, according to Refinitiv IBES data.</p>.<p>Total expenses rose 26.8 per cent to Rs 3,846 crore, amid a surge in global oil prices.</p>.<p>Even though prices of key fuel components such as petroleum coke and coal slightly cooled-off in the third quarter, prices remained elevated. Marginal cement price hikes, largely led by the eastern region of the country, failed to offset the surge.</p>.<p>Power and fuel costs, which account for a major part of the cement maker's expenses, jumped 61.3 per cent to 13.03 billion rupees.</p>.<p>The Indian cement sector is betting on the country's investment in infrastructure in the pre-election period to drive up its demand. A 33 per cent jump in allocation for key infrastructure sectors in the Union Budget 2023-24 might also boost cement demand. India is the world's second-largest cement producer.</p>.<p>"Given the government's focus on infrastructure growth in the Union Budget 2023-24,... cement sector is poised for robust growth in coming years," the company said in an exchange filing.</p>.<p>However, the rising input costs led by higher fuel prices may impact margins, the company added.</p>.<p>Gross revenue from operations in the third quarter rose 16.4 per cent to Rs 5,199 crore.</p>.<p>Rivals Ramco Cements, ACC Ltd and Ultratech Cement reported a fall in third-quarter profit on higher costs, while Ambuja Cements reported a profit jump on higher demand.</p>.<p>Shares of the company fell 2.1 per cent to Rs 23,750 after the results. The stock shed 13.7 per cent in 2022.</p>