Shri Keshav Cements & Infra Limited posts robust H1 FY25 growth despite pressures

Shri Keshav Cements & Infra Limited (BSE: 530977) has reported encouraging financial results for the first half of FY25, underscoring both growth and challenges in a dynamic market environment. The company, which specializes in cement manufacturing and solar power generation in Karnataka, India, has revealed a total income of Rs. 56.60 crore for H1 FY25, highlighting its ongoing operational improvements.

Income growth and operational highlights

In its recently released earnings report, Shri Keshav Cements announced a Q2 FY25 income of Rs. 25.36 crore, accompanied by an EBITDA of Rs. 3.04 crore and an EBITDA margin of 12.44%. This represents a significant stride in managing operational efficiencies, although profit after tax (PAT) reflects ongoing financial pressures. Despite this, Shri Keshav remains focused on strengthening its cost structures and enhancing its market presence.

For H1 FY25, the company has achieved total revenues of Rs. 56.60 crore, with an EBITDA of Rs. 11.11 crore, resulting in an EBITDA margin of 20.23%. This strong performance has been bolstered by strategic initiatives such as debt repayment worth Rs. 6.42 crore in Q1 FY25 and efforts to expand its manufacturing capabilities.

Credit rating upgrade and future capacity expansion

A key milestone for Shri Keshav this quarter has been a credit rating upgrade. The company’s long-term bank facilities have been elevated from IVR BB+ (Positive Outlook) to IVR BBB- (Stable Outlook), reflecting enhanced financial health and an optimistic growth trajectory. This upgrade covers facilities worth Rs. 223.59 crore.

Another notable achievement is the planned capacity expansion. The company’s cement production capacity will grow to 1 million tonnes by Q4 FY25, ensuring Shri Keshav is well-positioned to meet increasing market demand. Such expansion initiatives indicate the company’s commitment to solidifying its presence in the Indian cement market.

Solar power projects and commitment to sustainability

Continuing with its focus on renewable energy, Shri Keshav has announced the commissioning of an additional 3 MW solar plant at Biserahalli in Koppal, Karnataka. With this addition, the company’s total solar power generation capacity will reach 40 MW. The focus on clean energy reaffirms Shri Keshav’s dedication to sustainability and aligns with its vision for an environmentally responsible future.

Chairman Venkatesh Katwa commented on the company’s financial performance, noting that while short-term pressures are visible, they are being mitigated through key strategic initiatives aimed at operational efficiency and market expansion. He emphasized the company’s dual focus on sustainability through solar energy and growth through increased cement production capacity.

Expert perspective: resilient performance despite headwinds

Industry analysts have observed that Shri Keshav’s performance during H1 FY25 demonstrates resilience amid sector-wide challenges, particularly rising input costs and fluctuating demand dynamics. Analysts point to the company’s focus on renewable energy and cost management as strong drivers of future growth potential.

According to analysts, the company’s expansion of its solar plant capacity is a positive step, as it will allow Shri Keshav to meet its energy needs independently, reducing reliance on external power sources. Such moves not only contribute to cost efficiency but also bolster the company’s brand as a sustainable energy player, crucial in an increasingly ESG-conscious market.

Company overview

Shri Keshav Cements & Infra Limited, founded in 1993, is a leading producer of cement and solar energy in Karnataka. The company operates two cement manufacturing plants with a combined capacity of 1,100 TPD, located in Bagalkot district. It also operates solar power facilities with a capacity of 40 MW, highlighting its commitment to integrating sustainability into its core operations.

The company’s cement products, including popular brands like “Jyoti Power,” “Jyoti Gold,” and “Keshav Cement,” are well-known across Karnataka, Goa, Maharashtra, and Kerala. Since 2018, Shri Keshav has powered its cement production entirely with solar energy, a pioneering step in an industry traditionally known for high energy consumption.

Shri Keshav’s diversified business model, encompassing both cement and solar energy, is well-suited to mitigate market risks and leverage synergies between the two sectors. For FY24, the company reported total income of Rs. 128.99 crore, EBITDA of Rs. 41.45 crore, and net profit of Rs. 9.08 crore, showcasing robust financial health.