Improved prices help raise Shree Cement’s quarterly profit, India

Improved prices help raise Shree Cement’s quarterly profit, India
16 May 2012

Shree Cement, which has a strong presence in the North India market, reported an increase in net profit of INR11.28 crore for the fourth-quarter of FY11-12 (ending March 2012) largely on the back of improvements in demand leading to better price realisation and cost control initiatives.

EBITDA rose 42 per cent to INR450.40 crore during the period, the company said in a statement. Turnover, meanwhile, rose 38 per cent YoY to INR1477.85.

Cement production increased 29 per cent and during the quarter the company commissioned its 300MW power project at its Beawar plant in Rajasthan. Work also began during the quarter on a 2Mta clinker unit in Ras (also in the state of Rajasthan), which is expected to be completed by 2Q13.

Commenting on the outlook for the domestic market, Shree said: "Considering overall improvement in construction activity, the cement demand is expected to grow around 8% this year which augurs well for the industry. Continuous increase in fuel prices, transportation cost and other input costs as also depreciating rupee are, however, expected to continue putting pressure on costs and thereby impacting margins," the company stated in a release.

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