Srichakra Cement Takes Steps to Reduce Costs, Eyeing Improved Profitability in FY24

17 August 2023

• Net losses in FY23
  • Revenue rose year-on-year (YoY) but operational expenses also rose, mainly due to:
    • Higher selling, general and administrative (SG&A) expenses
    • Higher lease rentals
    • Higher power costs (up 37% YoY)
  • The company's profitability was impacted by heavy competition from major players in the industry, who added new capacity in the plant area.
• Efforts to reduce costs
  • The company has initiated efforts to reduce the cost of production, including:
    • Setting up a captive solar power generation unit with a capacity of 5 MW
    • Expecting industry margins to improve due to softening of international coal prices and declining crude oil prices
    • Expecting demand from the infrastructure segment and rural housing to drive demand in FY24