The Hindu Business Line : Shree Cement net up 17.8 pc; to pay 30 pc

Shree Cement's turnover increased by 4.2 per cent to Rs 606.92 crore from Rs 582.42 crore and its net profit jumped by 17.8 per cent to Rs 40.77 crore (Rs 34.60 crore).

The company announced a dividend of 30 per cent, that is, Rs 3 for every equity share of Rs 10 face value.

The company announced that in the last quarter of 2003-04, it replaced Rs 23 crore worth of loans from ICICI Bank at an interest rate of 11.65 per cent with similar loans from other banks at an interest rate of 5.7 per cent and incurred a premium of Rs 1.07 crore.

Loans worth Rs 112.41 crore from IDBI, ICICI Bank and UTI Bank were replaced with loans from banks with an interest tag of 6.58 per cent.

"The company has made a one-time charge for the current year of Rs 561.63 lakh for substituting long-term loans from FIs with loans from commercial banks," a press release from the company stated.

During the last financial year, the 36 MW captive power of Shree Cement, which is located at Beawar in Rajasthan, completed one year of operation and helped the company in cost saving.

"The company has also allowed higher depreciation of Rs 931.55 lakh in respect of the captive power plant," the press release added.

The company announced that its dispatches increased by 4.25 per cent to 28.41 lakh tonnes from 27.25 lakh tonnes in the previous financial year, 2002-03. Capacity utilisation of the plant was over 100 per cent.

"The company's flagship brand Shree Ultra Red Oxide cement, a new generation cement with rust retardant properties, launched two years ago, made consistent inroads into the fiercely competitive northern markets and counted for over 37 per of the company's production," the release stated.