Shree Cement reports 348 per cent jump in Q1 net

Kolkata, Jul 31 (UNI) Shree Cement today posted 348 per cent jump in Q1 net profit to Rs. 90.39 crore against Rs. 26 crore in the corresponding quarter previous year riding on the good market conditions and cost containment exercise undertaken by the company.

The net sales more than doubled to Rs. 309.39 crore against Rs.142.52 crore.

In the face of rising fuel prices, the company has well managed its energy and transportation costs. The power and fuel cost of the company was one of the lowest in the Indian cement industries, the company said in a statement here today.

The all India cement demand grew by 8 per cent during Q1 of 2006.

North India, where the company markets its production, has shown strong growth of 15 per cent.

With the growth in housing construction continuing and infrastructure and private capita expenditure increasing, the outlook for cement demand appears positive.

The Company has undertaken a capital expenditure programme to raise its production capacity to 9.1 million tonne by 2007-08 with 100 per cent captive power capacity.

The implementation work was running as per schedule. The 1.5 million tonne per annum capacity was expected to be completed by end of the current financial year.

UNI TJP PC DB1712