During the March ended quarter, Shree Cement's net profit fell to Rs222.51 crore on higher expenditure despite a 16% increase in sales
Shree Cement Ltd, reported a 19% decrease in its third quarter net profit due to 22% increase in its expenditure notwithstanding higher sales.
For the quarter to end-March, Shree Cement said its net profit fell 19% to Rs222.51 crore from Rs274.09 crore while total revenues, including sales, rose 16% to Rs1,664.92 crore from Rs1,442.85 crore, same period last year.
During the March 2014 quarter, Shree Cement's expenditure increased 22% to Rs1,400.52 crore from Rs1,148.72 crore a year ago period. It had to write off pre-operative expenses incurred on certain capital projects of Rs11.24 crore. The expenditure includes Rs29.62 crore worth provision towards statutory liabilities.
“Provision towards tax exemption availed as per relevant notifications amounting to Rs32.87 crore for which assessing authorities have taken contrary stand. Company has however, filed appeals in these matters,” the company said in a regulatory filing.
However, Shree Cement has challanged penalty imposed by the Competition Commission of India (CCI) and not made any provisions against the penalty of Rs397.51 crore.
Shree Cement reported 10% decrease in its profitability from power segment to Rs62.51 crore. Its cement segment reported 4% fall in its profitability to Rs217.73 crore.
As on 31 March 2014, FIIs shareholding in Shree Cement grew to 8.63% from 7.77%, domestic institutional investors (DIIs) shareholding grew to 6.29% from 5.54%, while public shareholding fell to 20.29% from 21.80% compared with same period a year ago. However, promoter shareholding has remained the same, at 64.79%.
Shree Cements closed Monday 1.39% down at Rs5,740 on the BSE, while the 30-share Sensex ended the day flat at 22,631.
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