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Shree Cement Q1 Results: Board suggests investing Rs 7,000 crore to increase clinker and cement capacity

Jul 26, 2023

By: BlinkX Research Team

In order to increase its business operations, Shree Cement Ltd. has suggested expanding its clinker and cement producing capacity throughout the nation. The amount of the anticipated investment is estimated to be Rs 7,000 crore.

The company proposes to build a 3.65 million ton per year clinker plant in Pali, Rajasthan, and a 6 million ton per year cement plant in Etah, Uttar Pradesh.

The company has additionally proposed building a 3.65 million ton clinker factory in Kodla and a 6 million ton cement plant in Kodla and Bengaluru, both in the state of Karnataka.

It is proposed that the capacity be increased by the quarter ending in March 2025. The projected funding sources for the capex include internal accruals and loans.

The company's current annual cement production capacity, including that of its fully owned subsidiary, is 49.9 million tonnes. The company's utilization rate for its financial year 2023 was 70%.

In addition to the capex, the company's board has also agreed to undertake strategic investments in ready mix concrete (RMC), starting with a goal to establish five such units by the end of this financial year. The amount of investment the company intends to make in this market is not disclosed.

Today, Shree Cement reported financial results for the June quarter. The net profit was aided by another income component, and EBITDA met expectations. 8.92 million tonnes of the company's volumes were in line with forecasts.

Source: Media Reports