Shree Cement Q3 net profit rises 3% to Rs 310 crore

Cement manufacturer Shree Cement posted a 2.87 per cent rise in its standalone net profit at Rs 309.95 crore in the quarter ended December 31, 2019. The net profit in the corresponding quarter last fiscal stood at Rs 301.29 crore.

The Kolkata-headquartered firm’s net revenue stood at Rs 2,848.34 crore, up 2.43 per cent from Rs 2,780.63 crore clocked in the year-ago-period. The company said cement sales went up 6 per cent to 5.98 million tonne from 5.64 million tonne recorded in the corresponding quarter of the previous year.

“With continuous focus on premium brand segment and reduction in fuel and other input costs, the EBIDTA (earnings before interest, depreciation, taxes and amortization) and net profit of the company increased during the quarter ended December 31, 2019," Shree Cement said in a statement.


The release further added, “cement demand has been largely muted due to slowdown in Indian economy. There are however, green shoots visible on the back of good monsoon and infra spending."

During the quarter under review, Shree Cement said it raised Rs 2,400 crore through Qualified Institutions Placement (QIP) and allotted 12,43,523 equity shares of Rs 10 each at a price of Rs 19,300 per equity share in November. Some of the top investors, who have invested in excess of Rs 20 crore, include Aberdeen Global, New World Fund Inc, Aditya Birla Sunlife, APM Kotak India Master Fund, Avendus Absolute Return Fund, American Funds Insurance, AXIS Mutual Fund and Multicap Fund, East Spring Investments India Infrastructure, Fidelity Investments, HSBC China, among others.


The company has also declared an interim dividend of Rs 110 per equity share of Rs 10 each for FY'20, which include Rs 70 per equity share as normal dividend and Rs 40 per equity share as additional dividend.