Shree Cement’s December quarter earnings were marred by the performance of its power segment, which incurred a loss at the operating level, thus impacting overall profitability. Last but not the least, freight costs surged, pushing cement operating cost/tonne higher. Cement volumes would remain sluggish in the states of Uttar Pradesh and Punjab due to elections thus impacting cement realizations. Shree Cement is on a capacity addition spree and aims to become a 40mt capacity company by FY19. It will incur a cost of Rs1,800 crore to add clinker capacity of 2.80 mtpa and cement capacity of 3 mtpa in Karnataka.

Source: Mint February 20, 2017 02:18 UTC