Shankara Building Products gains after starting processing unit

Shankara Building Products rose 4.81% to Rs 1,242 at 10:35 IST on BSE after the company announced that it has started new processing facility in Secunderabad.

The announcement was made after market hours yesterday, 31 August 2017.

Meanwhile, the S&P BSE Sensex was up 149.80 points or 0.47% at 31,880.29. The S&P BSE Small-Cap index rose 138.57 points or 0.87% at 16,130.20.

On the BSE, 32,000 shares were traded on the counter so far as against the average daily volumes of 65,931 shares in the past one quarter. The stock had hit a high of Rs 1,254.10 so far during the day, which is a record high. The stock hit a low of Rs 1200.50 so far during the day. The stock had hit a record low of Rs 545 on 5 April 2017.

The small-cap company has equity capital of Rs 22.85 crore. Face value per share is Rs 10.

Shankara Building Products announced that the company has started new processing facility in Secunderabad, Telangana to capitalize on the growing requirements of the region through network of Telangana state retail outlets. Further, the company has relocated processing capacity from Surat, Gujarat to Chegunta, Hyderabad. The relocation will ensure better utilization levels on back of increased availability of raw materials which was hampering production and sales in Surat.

Shankara Building Products said that Centurywells Roofing India, a step-down subsidiary of the company has started a new colour coated roofing sheet processing facility at Secunderabad. The processing facility is spread over 5,000 square feet on leased premises and will have a production capacity of approximately 150 MT per month. The infrastructure needs of the region are large as lot of Central and State Government spending is taking place which will promote new regions, cities and towns with increasing requirement for building products. This facility will therefore capitalize on the growing requirements of the region through network of Telangana state retail outlets, Shankara Building Products said.

Shankara Building Products also announced that Taurus Value Steel & Strips, a wholly owned subsidiary the company has relocated its processing unit from Surat to Chegunta, Hyderabad. The installed capacity of this unit is around 800 MT per month. Increased utilization levels will bring in higher efficiency thereby improving operating performance going forward, Shankara Building Products said.

On consolidated basis, Shankara Building Products' net profit rose 32.77% to Rs 17.22 crore on 4.36% growth in net sales to Rs 591.62 crore in Q1 June 2017 over Q1 June 2016.

Shankara Building Products is one of the leading organized retailers of home improvement and building products in India based on number of stores, operating under the brand name 'Shankara Buildpro.

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