Shree Cement reports 272.42 % rise in net profit

Shree Cement reports 272.42 % rise in net profit
Published: 19 January 2007

Shree Cement on Thursday reported a 272.42 % rise in net profit at Rs 104.13 crore for the third-quarter (Q3) ended December 31, 2006, compared to a Rs 27.96 crore net in the earlier corresponding period. The higher Q3 net profit follows a 152.64 % growth in Shree Cement’s October-December quarter net sales revenue at Rs 364.54 crore (Rs 144.29 crore).

Elaborating on the results, company officials attributed the strong Q3 financial to good market conditions, better branding and regular cost-containment initiatives undertaken by the company. This apart, the company maintained its energy and transportation costs despite rising fuel prices, it said in a statement issued after the board meeting held in Kolkata.

While net sales for the quarter under review rose by 152.64 %, operating profit during the quarter under review was up at Rs 164.83 crore over Rs 43.90 crore in the corresponding quarter last year. Depreciation and pre operating expenses was also up at Rs 26.29 crore in the quarter under review compared to Rs 12.27 crore in the earlier corresponding quarter.

In a statement issued after the board meeting, the company said all India cement demand has during first nine months of the current year grown by 9.3%. North India, which happens to be the main market for the company’s cement production, has shown a growth of 10.6%.

“The benefits of timely expansion bears testament to the business acumen of the company,” the company stated. The capacity enhancement program undertaken by the company to raise production from 4.5Mta to over 10Mta is running as per schedule. Company officials expects to commission it fourth unit of 1.5Mta by the end of current financial year taking its annual capacity to over 6Mta.