Shree Cement Q4 net up 191%; plans Rs700cr capex

Shree Cement of BG-HM Bangur group has posted a 191% jump in net profit in the quarter ended March 31, 2006 at Rs 60.71 crore from Rs 20.84 crore in the quarter ended March 31, 2005.

According to an official release issued today, the turnover of the outfit rose by 38% from Rs 163 crore in the quarter ended March 31, 2005 to Rs 225.5 crore in corresponding period of 2006. However, the net profit for the whole year  declined to Rs 18.41 crore from Rs 29.07 crore in 2004-05. The turnover in 2005-06 rose by 29% to Rs 667.69 crore from Rs 582 crore in 2004-05.

The company has lined up Rs 700 crore capex programme to double capacity by March 2008.

The company currently has installed capacity of around 5 million tonnes. After the expansion, it would achieve a capacity of 9.1 million ton, making it one of the biggest in the country.

The managing director of Shree Cement, H M Bangur informed that the entire Rs 700 crore capex would be financed through a combination of internal accruals and borrowings.

"Around Rs 350 crore will be internal accruals and the rest is borrowing. We are not going raise anything in equity," Bangur said.