Shree Cement Q2 net profit up 19% to Rs292 crore
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New Delhi: Shree Cement Ltd on Monday reported a 19% growth in its standalone net profit at Rs292 crore for the second quarter ended 30 September.
The firm had clocked a net profit of Rs246 crore in the year-ago period, it said in a BSE filing.
Total standalone income of the company rose by 18% to Rs2,254 crore in July-September quarter this fiscal from Rs1,915 crore during the same period in 2015-16. Its total expenses were higher at Rs2,030 crore against Rs1,744 crore during the period under review. The firm announced that it will invest around Rs652 crore on capacity expansion.
Shree Cement said it will set up a grinding unit in Sri Ganganagar district of Rajasthan with a capacity of 3.6 million tonnes per annum (MTPA) with an initial plan to set up a blending unit. The expansion will cost about Rs300 crore, which will come from internal accruals. The project is expected to be completed by April-June 2017-18, it added.
The firm also revised its earlier expansion plan for the Bihar unit. Now, it will expand the existing capacity from 3.6 MTPA to 4.5 MTPA through installing blending equipment and de-bottlenecking with a cost of about Rs17 crore, which will be met through internal accruals.
In August, Shree Cement had said it will expand capacity of its cement grinding unit at Aurangabad (Bihar) to 5.60 MTPA at a cost of around Rs285 crore. The company will also set up a 5.5 MTPA grinding unit in Bihar with an investment of around Rs300 crore, which again will be met through internal accruals. The project is expected to be completed by January-March 2017-18.
In May, the firm said it will set up a clinker plant with 2.8 million tonnes per annum (MTPA) capacity at its integrated cement plant in Raipur, Chhattisgarh. The investment required for the capacity addition at the 2.6 MTPA cement plant is about Rs700 crore, which excludes the cost of land and other infrastructure. The firm has a total cement production capacity of 27.2 MTPA with plants spread over Rajasthan, Uttarakhand, Bihar, Harayana, Chhattisgarh and Uttar Pradesh. Besides, it has a power generating capacity of 627 mega watt (MW).