8 May 2020 Shree Cements (SRCM) 4QFY20 results reflect the benefit of improved pricing as EBITDA/t has improved sharply as expected with decline in costs. A strong balance sheet (~INR45b net cash) and limited capex provides comfort in the current environment of weak demand due to COVID-19. We, however, believe this is factored in at the current valuation (15x FY22E rating. SRCMs 4QFY20 volumes declined 5.4% YoY to 6.9mt. This was much lower than the 10-12% YoY decline reported by peers ACC and Ambuja. power) was up ~3.5% YoY (+2% QoQ) to INR4,659/t (5% lower than est. INR4,881/t), which could be due to external sale of power (not disclosed from this quarter). Total revenue declined 2% YoY to INR32.2b (4% lower than est.). Blended cost/t declined 7% YoY (-3% QoQ) to INR3,097/t.