Shiva Cement spurts after board OKs expansion

Shiva Cement soared 10.26% to Rs 11.50 after the company said its board approved the plan for setting up of 4000 TPD clinker unit alongwith a 1 MTPA grinding unit.

The company said it will fund the project cost of Rs 1530 crore with a mix of long-term debt and equity. The ground breaking ceremony is scheduled to be held on 22 October 2020. The board also approved the corporate environment policy.

Meanwhile, the cement maker posted net loss of Rs 6.26 crore in Q2 September 2020 compared with net loss of Rs 6.23 crore in Q2 September 2019. Net sales fell 6.5% to Rs 5.32 crore in Q2 September 2020 over Q2 September 2019. Pre-tax loss stood at Rs 8.46 crore in Q2 September 2020 as against Rs 8.27 crore in Q2 September 2019. The Q2 result was declared post trading hours yesterday, 20 October 2020.

The company said it has taken into account possible impact of COVID-19 in preparation of financial results. Due to lockdown, the volumes for quarter and half year ended 30 September 2020 has impacted partially. The sales have resumed and the company has sufficient demand for its product to continue its operations.

"The management is hopeful of improving the performance of the company by exploring various avenues of enhancing revenue. The said measures are expected to improve the performance of the company and accordingly the financial statements continue to be presented on a going concern basis," the firm said.

Shiva Cement manufactures Portland Slag Cement (PSC), Portland Puzzolana Cement (PPC), clinker and limestone chips.

Powered by Capital Market - Live News