Star Cement profit falls 43% despite revenue rise amid expansion drive

Star Cement Limited reported a 43% decline in net profit to H169 crore for FY 24-25, down from H295 crore in FY 23-24. This was primarily due to increased depreciation from new manufacturing assets and higher finance costs. Despite this, total revenue from operations rose by 9% to H3,163 crore. Consolidated clinker production increased to 31.23 lakh tons in FY 24-25 from 28.05 lakh tons in FY 23-24, and cement sales volume reached 46.51 lakh tons from 44.04 lakh tons.

The company completed major expansion projects, including a 3.3 Mn TPA clinker plant and a 2 Mn TPA cement plant, with a combined investment of H1,800 crore. Future plans include a new 2 Mn TPA grinding unit in Silchar by FY 25-26 and another in Jorhat by FY 26-27, largely funded through earnings. The board did not recommend a final dividend for FY 24-25, opting to retain funds for these projects.