The company reported a net profit of 4.23 crore for the first quarter, as compared with Rs 4.16 crore in the corresponding quarter last year. Its turnover stood at Rs 22.19 crore for the quarter, as against Rs 16.92 crore during the same period last year, reflecting an increase of 31 per cent.
Chandro said the company was enhancing its existing cement manufacturing capacity in Nalgonda by 2.4 million tonne a year in two phases. "The first phase, involving an investment of Rs 135 crore with a 70 per cent debt and the rest through internal accruals and equity will add a 900,000-tonne a year capacity. The first phase expansion will be completed by March 2009," he said.
He said the company was in the process of achieving financial closure for the Rs 565-crore second phase expansion, which will ramp up its production capacity by 1.5 million tonne per year. Of the total outlay, Rs 400 crore will be debt, Rs 100 crore through private equity placement and the rest from the promoter's equity. The expected date of completion of the second phase is June 2010, he added.