Shree Cement Dec net dips 84%

Shree Cement today clocked a 83.5 per cent dip in net profit for the quarter ended December 31, 2010 at Rs 27.49 crore, as sales declined and fuel and freight costs expanded.

The company had reported Rs 167.43 crore net profit in the corresponding period last fiscal, it said in a filing to the Bombay Stock Exchange.

Net sales of the company declined by 9.8 per cent to Rs 780.39 crore from Rs 866.04 crore in the year-ago period.

Rise on expenditure on higher power & fuel and freight costs hit the Shree Cement's bottom line as the total costs on both these accounts increased to Rs 368.2 crore from Rs 296.6 crore during the October-December quarter of the last fiscal.

Transport costs, which form a significant part of the overall cost structure for cement makers, have seen a steady increase over the last few years with the rise in the cost of diesel. Rail freight rates have also increased.

Coal prices have also shown a rising trend and increased from $77.60 per tonne in March 2010 to $109.30 in November 2010.

The scrip of the company closed today at Rs 1,685 per share, down 1.45 per cent over the previous closing.