Shree Cement Q1 net surges two fold to Rs 291 cr

Driven by high volume growth and reduced operating expenses, Shree Cement has recorded a net profit of Rs 291.13 crore during the first quarter of 2009-10, an over two-fold jump from Rs 110.90 crore in the same period last fiscal.

The company said the increase in the net profit was "because of higher volume growth on account of rapid capacity expansion undertaken by the company over last 2-3 years". Besides, reduction in power and fuel expenses as well as improved plant efficiency led to the company's "good performance", the statement said.

The company's total turnover was up 50 per cent at Rs 922.95 crore during the quarter, against Rs 615.11 crore during Q1 of 2008-09, Shree cement said in a statement today.

It added that encouraged by the performance, the company is investing Rs 1,000 crore to set up new cement and power plants.

The company said that looking ahead "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".