Shree Cement 1Q net profit soars as power ops helps

Shree Cement 1Q net profit soars as power ops helps
Published: 27 July 2009

India’s Shree Cement Ltd said Friday its fiscal first-quarter net profit soared from a year earlier, helped by increased contribution from its power business.

The company’s net profit for the quarter ended June 30 rose to INR2.91bn from INR1.11bn in the year-earlier period, the company said in a statement.

Net sales for the period rose 50% to INR9.22bn from INR6.14bn a year earlier, the company said.

Profit before tax from the power segment rose to INR1.27bn from INR207.62m.

Shree Cement expects its power business to contribute more in the future and is in the process of augmenting its generating capacity, Chairman and Managing Director H. M. Bangur told Dow Jones Newswires

"We expect to double our power-generation capacity by the end of the current (fiscal) year," Bangur said, adding, the volume of power sold externally will rise significantly by that time.

Profit before tax from its cement business during the just-ended quarter rose 39% to INR2.01bn from INR1.45bn.