Shree Cement Ltd reported a 66.35 per cent fall in Oct-Dec net profit due to high depreciation costs, a top official said on Tuesday.
Net profit in the third quarter was 350 million rupees, down from 1,041.29 million rupees in the same period a year ago.
The company has provided 1.87 billion rupees for depreciation and amortization costs, up from 262.94 million rupees in the same period a year ago in line with its policy to distribute the cost equally every quarter, Managing Director HM Bangur told Reuters.
"Our policy to distribute depreciation costs proportionately in all quarters to avoid one-time impact has resulted in lower profits," he said.
The Kolkata-based firm’s net sales during the period grew 46.06 percent to 5.40 billion rupees from 3.70 billion rupees on good volumes, Bangur said "Higher volumes on good demand contributed to revenue growth during the quarter," he said.
The firm currently produces 8Mt of cement at its plant in the northern state of Rajasthan.
The company is looking at limestone mining leases in India and abroad to ensure raw material supplies to meet demand, he said.