Shree Cement Posts 19% Rise In Q2 Profit

New Delhi: Shree Cement on Monday reported a 19 per cent growth in standalone net profit at Rs 292 crore for the quarter ended September 30, 2016.

The firm had clocked a net profit of Rs 246 crore for the corresponding period a year ago, it said in a filing to the BSE.

Total standalone income of the company rose 18 per cent to Rs 2,254 crore in the July-September quarter of this fiscal year, from Rs 1,915 crore in the year-ago period.

Total expenses were higher at Rs 2,030 crore in the quarter under review, as against Rs 1,744 crore a year ago.

The firm announced that it will invest around Rs 652 crore on capacity expansion.

Shree Cement said it will set up a grinding unit in Sriganganagar 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 Rs 300 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 Rs 17 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 Rs 285 crore.

The company will also set up a 5.5 MTPA grinding unit in Bihar with an investment of around Rs 300 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 Rs 700 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 megawatt (MW).