Shree Cement July-Sept net up 36 per cent, trails forecast

Shree Cement July-Sept net up 36 per cent, trails forecast
24 October 2007

Shree Cement Ltd on Tuesday posted net profit of 1.06 billion rupees for the July-Sept quarter, trailing analysts’ forecast.

A Reuters poll of analysts had forecast net profit of 1.15 billion rupees against 0.78 billion rupees in the same period last year. It reported revenues of 4.66 billion, up from 3.16 billion rupees last year.

"Higher sales volume has driven the profit growth during the quarter," managing director H M Bangur told Reuters without elaborating.

The firm’s annual output would reach 6 million tonnes in 2007/08 and 9.5 million tonnes in 2008/09 after setting up of two clinker units and a grinding unit at its plant in Rajasthan at a cost of 30 billion rupees, he said.

"The expansion will be complete by middle of May next year," Bangur said.

"Revenue growth will depend on price realizations, which is expected to be neutral in the short term," he said.

The company is looking at arresting high input and overhead costs through high volumes, Bangur said. Though cement prices are not expected go up much, it may increase to the extent costs go up.

Shares in the company ended up 2.8 percent at 1,416.55 rupees in a firm Mumbai markets.
Published under Cement News