Cement companies have been reporting substantial profit growth over the past couple of quarters, led by the housing and infrastructure push by the Indian government ahead of this year's general elections. The company's profit nearly tripled from the previous year to 7.34 billion rupees ($88.4 million) for the three months ended Dec. 31, topping analysts' average estimate of 5.80 billion rupees, according to LSEG data.

"Strong volume growth, building premium products, and softening of fuel prices have helped us deliver a robust improvement," Managing Director Neeraj Akhoury said in a statement. Power and fuel costs, constituting nearly a third of total expenses, declined 5%. Its total sales volume climbed 10.7% to 8.89 million tons. In fiscal 2024, the top four cement makers by market cap, barring market leader UltraTech Cement, have reported double-digit profit growth in each of the three quarters. UltraTech reported a single-digit growth in the June quarter. Shree Cement's gross revenue from operations surged 19.3% from a year earlier to 62.02 billion rupees. Analysts at Elara Capital anticipate strong volume growth for the sector in the fourth quarter, citing the beginning of the busy construction season and increased pre-election government spending.

Earlier this month, market leader UltraTech Cement beat profit estimates, driven by robust demand and price increases. Shares of Shree Cement closed 1.7% higher ahead of the results. ($1 = 83.0180 Indian rupees)

(Reporting by Ashish Chandra in Bengaluru; Editing by Dhanya Ann Thoppil)