Shree Cement reported a decline in profit for the June quarter, as higher fuel and raw material expenses outweighed the benefit of strong sales volumes. The results show how supply disruptions linked to the conflict in West Asia increased operating pressure for the cement producer.
The company saw double-digit volume growth during the quarter, indicating healthy demand for its products. However, that expansion was not enough to fully absorb the jump in input costs, especially after disruptions forced the use of a more expensive fuel mix.
For Shree Cement, India’s third-largest cement maker, the quarter highlights the sensitivity of margins to energy and logistics shocks. Even with stronger shipments, elevated fuel bills and raw material costs reduced profitability and dragged on overall earnings.
Looking ahead, the company expects profitability to improve from the second quarter onward if geopolitical conditions remain stable. That outlook suggests Shree Cement is counting on calmer supply conditions and a more favorable cost environment to support margins in the coming months.
