The Board of Directors in its meeting held today approved the financial results for the quarter ended 30th June, 2009. Company has posted 50% increase in its top-line from Rs. 615 Cr. to Rs. 923Cr. Net Profit also surged by 163% from Rs. 111 Cr. to Rs. 291 Cr. recorded in the corresponding quarter of last year. This increase is primarily because of higher volume growth on account of rapid capacity expansion undertaken by the company over last 2-3 years. Reduction in operating expenses especially power & fuel expenses and improved plant efficiency also contributed to the good performance of the company. The operating margin of the company is one of the highest in the industry.
30th Annual General Meeting
With a World Record in project execution and outstanding operational efficiency, Shree Cement recordesd a turnover of Rs. 2715 crore in the year 2008-09, 29% higher than previous year of Rs. 2109 crore. Profit after tax also went up by 122% from Rs. 260 crore to Rs. 578 crore. In the Company’s 30th Annual General Meeting, the shareholders approved and adopted audited accounts for the year 2008-09.
The Executive Chairman of the Company Shri B G Bangur said in his address to the shareholders that last year was a difficult year and the excellent performance of the Company during 2008-09 reflects the Company’s inherent ability to turn challenges into opportunity. The Company was quick to realize and adopt its operations to the changed global business environment to deliver better results for the year. During the year the company ventured into the power sector as well. The power business is the new growth area for the company.
Dividend
The Shareholders approved a final dividend of Rs. 5/- per share for the year 2008-09 in addition to the interim dividend of Rs. 5/- per share declared earlier during the year. Thus the total dividend payout during the year stood at Rs. 10/- per share against Rs. 8/- per share declared last year.
Cement Demand
During year 2008-09, the Cement industry clocked impressive performance to grow at 8.4% and emerged as one of the few sectors which was able to maintain its growth level amidst recessionary situation around the globe. Strong housing demand especially from semi-urban and rural India in the second half of 2008-09 along with timely stimulus packages by the Govt. helped the industry in overcoming the difficult situation during the year.
Shri Bangur added that going forward, he sees several positives emanating out of the stable govt. at the centre which is expected to push the economic liberalization and reform agenda. The Union Budget has announced several measures to boost housing and infrastructure which are the major demand drivers for cement. Increased allocations to National Highway Development Programme, Urban Renewal Mission, Industrial and freight corridor and the Commonwealth Games will significantly improve the cement demand situation. Also increased Govt. focus on providing urban and rural housing and directing spends in social schemes like NREGA towards permanent structures are also going to increase cement demand. He also called for building cement roads considering the benefit it provides over bitumen roads.
Expansion Projects
Encouraged by the performance, Company is investing Rs. 1000 crore to set up cement and power plants. It is in the process of implementing two cement grinding units in Suratgarh and Roorkee of 1.5 mtpa and 1.0 mpta respectively. On the power front, Company is putting up Waste Heat Recovery Projects of 43 MW at its Beawar and Ras facilities. Company is also putting up Thermal Power plants of 100 MW at its Beawar and Ras facilities. Going forward the company plans to set up cement and power projects in other parts of India as well as outside India.
Awards and Accolades
During the quarter Company has bagged the prestigious Golden Peacock Award 2009 for combating Climate Change. The award is in recognition of its multiple initiatives in the direction of reducing carbon emissions and excellent Environment Management Practices. Company also bagged ‘Silver Edge Award’ by Network Computing Magazine for one of the top IT implementation in India.