Shree Cement sees FY11 revenues flat

Shree Cement sees FY11 revenues flat

Kolkata: Shree Cement Ltd expects FY11 revenues to remain flat and margins are likely to slip further as cement prices soften, chairman H.M. Bangur said on Thursday.

“Over the last few quarters margins have been coming down and the trend is likely to continue during FY11," he told Reuters.

In FY10, the firm recorded net sales of Rs36.3 billion. For the quarter-ended June, net profit fell 64% to Rs1.06 billion on sales of 9.44 billion, mirroring its peers.

Bangur was talking at the National Convention of Company Secretaries of India in Kolkata.

The Rajasthan-based cement maker plans to invest Rs36 billion on capital expenditure over the next 18 months, he added.

The firm is setting up a clinker unit in Rajasthan and aims to start production by Nov-Dec 2010.

Bangur expects cement demand for the country to rise 8-9% in FY11, but prices are likely to remain steady at current levels.

“Prices are not expected to go down further as they have bottomed out" he said adding there are some mismatches in demand and supply, which is seen correcting next year, when demand is likely to grow in double digits.

At 1.47 p.m., shares in Shree Cement were up 0.13% at Rs1,870.05 in a firm Mumbai market, which was up 0.4%.