💰 Financial Performance

Revenue Growth by Segment

Total sales volume for FY 2024-25 was 9.05 lakh MT, representing a 4% decrease compared to 9.38 lakh MT in the previous year (which included 2.06 lakh MT of trial run sales). Segment-specific revenue percentages are not disclosed.

Geographic Revenue Split

Not disclosed in available documents, though manufacturing operations are centered in Odisha, India.

Profitability Margins

Operating Profit Margin declined significantly to -15.01% in FY 2024-25 from 2.84% in the previous year, a 628% decrease primarily driven by lower sales realizations. The company reported a net loss for the year, resulting in no dividend recommendation.

EBITDA Margin

Operating EBITDA saw a sharp reduction, contributing to the -15.01% operating margin. The Interest Coverage Ratio fell to -0.40 from 0.10 (a 5% reduction in ratio terms) due to decreased EBIT and higher interest costs.

Capital Expenditure

The company raised INR 400 crore through a rights issue in May 2024 to strengthen its financial position. It has also secured a new term loan sanction of INR 250 crore from DBS Bank specifically for a 1 MTPA cement grinding unit expansion project, with INR 25 crore already drawn during the fiscal year.

Credit Rating & Borrowing

CRISIL reaffirmed the long-term rating at 'Crisil A+/Stable' and reassigned 'Crisil AA- (CE) /Stable' for an INR 648.76 crore facility backed by a corporate guarantee. Project loans are linked to the 1-year MCLR rate with an annual reset.

⚙️ Operational Drivers

Raw Materials

Key raw materials include Limestone (sourced from captive mines), Coal, and Pet Coke. Specific cost percentages per material are not disclosed.

Import Sources

Limestone is sourced locally from captive mines in Odisha. Other materials like coal and pet coke are monitored via global commodity markets.

Key Suppliers

Not specifically named, though the company maintains long-term relationships with suppliers and uses third-party staffing agencies for contract labor.

Capacity Expansion

Current clinker manufacturing capacity is 1.4 MTPA in Odisha. The company is expanding with a 1 MTPA cement grinding unit. Core equipment has excess capacity to support future growth.

Raw Material Costs

Input costs are affected by price volatility in coal and pet coke. The company mitigates this by using captive limestone mines and maintaining sufficient inventory to ensure continuous supply.

Manufacturing Efficiency

The plant utilizes dry manufacturing technology. Efficiency is driven by the WHRS (60% power self-sufficiency) and the AFR circuit for thermal substitution.

Logistics & Distribution

Logistics costs are identified as a major challenge due to rising freight rates; the company focuses on cost optimization and selecting the most cost-effective transport methods.

📈 Strategic Growth

Expected Growth Rate

8%

Growth Strategy

Growth will be achieved through a 1 MTPA grinding unit expansion, increasing market share via high-quality products, and cost optimization. The company leverages its affiliation with the JSW Group and utilizes proceeds from its INR 400 crore rights issue to repay debt and fund corporate purposes.

Products & Services

Cement bags and Clinker.

Brand Portfolio

Shiva Cement (an affiliate of the JSW Group).

New Products/Services

Development of eco-friendly products using alternative raw materials like fly ash, slag, and pozzolans to appeal to environmentally conscious buyers.

Market Expansion

Targeting rural markets through PMAY housing demand and exploring export opportunities in Africa, the Middle East, and Southeast Asia.

Market Share & Ranking

The company aims to expand market share in the Indian cement industry, which is the world's second-largest producer with 553 MTPA capacity.

Strategic Alliances

Affiliate of the JSW Group; JSW Cement Limited is the holding company with a net worth of INR 2,856.59 crore.

🌍 External Factors

Industry Trends

The Indian cement industry is projected to grow 6-7% in FY 2024-25. Trends include a shift toward green cement (3.3% global CAGR) and increased adoption of Waste Heat Recovery Systems (WHRS).

Competitive Landscape

Competes in a consolidating market against major players and international firms like Lafarge-Holcim, Heidelberg Cement, and Vicat Cement.

Competitive Moat

Competitive advantages include captive limestone mines in Odisha, 60% power self-sufficiency through WHRS, and strong backing from the JSW Group. These are sustainable due to long-term mineral rights and integrated infrastructure.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending; the 2025-26 Union Budget allocated INR 11.21 lakh crore for infrastructure and INR 96,777 crore for urban development (a 17% increase).

Consumer Behavior

Shift toward sustainable and eco-friendly construction materials; rising demand for rural housing under government schemes.

Geopolitical Risks

Vulnerable to global commodity price fluctuations for energy inputs like coal and pet coke.

⚖️ Regulatory & Governance

Industry Regulations

Operations must comply with pollution norms, the Companies Act 2013, and SEBI (LODR) Regulations 2015. The company follows Secretarial Standards 1 and 2.

Environmental Compliance

The company operates a WHRS and an AFR circuit to meet sustainability goals; specific ESG compliance costs in INR are not disclosed.

Taxation Policy Impact

Impacted by changes in government tax laws and recent tax cuts aimed at boosting infrastructure demand.

⚠️ Risk Analysis

Key Uncertainties

Supply-demand imbalances in the cement industry and cyclical fluctuations in end-user sectors like real estate and infrastructure.

Geographic Concentration Risk

High concentration in Odisha, where the clinker plant and captive mines are located.

Third Party Dependencies

Uses third-party staffing agencies for contract labor at manufacturing facilities.

Technology Obsolescence Risk

Mitigated by investing in cutting-edge infrastructure, automation, and ICCM technology.

Credit & Counterparty Risk

The company monitors internal performance and cash flow to maintain operational discipline and control cost increases.