n Realizations declined 13% yoy and 10.2% qoq at ~`3,010/ton in the quarter. Cement aggregate volumes dipped 7.6% yoy and 6.2% qoq to 2.28m tons. Drop of 28% yoy (76% qoq) in Power revenues (ex inter-segmental) further impacted the decline in overall revenues. We expect cement demand and prices to revive in 2HFY11.

n Profitability takes a hit. Shree's EBITDA stood at `590/ton (down 62% yoy and 43% qoq) compared with `440/ton for UltraTech and `650/ton for Ambuja. Lower Cement & Power realizations and higher depreciation led to 94% yoy PAT decline; however, lower interest cost (down 67% qoq) due to debt repayment, arrested the fall.

n Dismal performance by Power. Sale of power units dipped 67% qoq (~73m units including traded units) due to lower realizations as an effect of higher supply from hydro-power projects in the industry. Power EBITDA was ~`1.2/unit (`1.8/unit qoq; `5/unit yoy). The company targets commissioning 300MW of power plant capacity in 1QFY12 and 1.5m ton grinding unit in 4QFY11.