Shares of Shree Cement Ltd climbed 3 percent on July 26 after the company reported an 84 percent surge in net profit for the June quarter. Its capacity addition plans also lifted the sentiment for the stock.
The company reported a standalone net profit of Rs 581.1 crore as against from Rs 316 crore a year ago, whereas irs revenue from operations jumped 19 percent to Rs 4,999.1 crore.
However, operating margin contracted to 18.6 percent during the quarter under review from 19.5 percent last year.
At 11:37am, shares of the company were trading 1.7 percent higher at Rs 24,076.55 on the BSE.
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The company’s board also approved investment worth Rs 7,000 crore for increasing capacity by way of internal accruals and debt. The proposed capacity addition will be for a clinker manufacturing plant of 3.65 million tonnes at Pali, Rajasthan, along with cement capacity of 6 million tonnes in Pali and in Etah, Uttar Pradesh, and another clinker manufacturing plant of 3.65 million tonnes and a cement capacity of 6 million tonnes at Kodla and Bangalore in Karnataka.
These capacities should be added by the end of March quarter in 2025, the company said in an exchange filing.
The company's board has also decided to make strategic diversification in the Ready Mix Concrete (RMC) business commencing with a plan to set up 5 RMC units by this financial year, added Shree Cement.
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