The Hindu Business Line : Sagar Cements' turnover, net up; pays 25%

Hyderabad June 2 Sagar Cements Ltd has achieved a turnover of Rs 112.82 crore in the financial year 2006-07 as against Rs 76.22 crore in the previous year, recording a growth rate of 48 per cent.

The profit after tax for 2006-07 increased to Rs 30.02 crore on a consolidated basis as against Rs 4.05 crore in the previous year. The earnings per share has improved to Rs 26.61 from Rs 3.63.

The Hyderabad-based company paid a dividend of 25 per cent on the equity shares of the company for 2006-07.

During the year, the India Fund Inc (belonging to Blackstone Group) invested in 1 million equity shares of Rs 10 each of the company at a premium of Rs 180 per share.

In a press release, the company attributed the improved performance to previous investments made by it in upgradation of technology and de-bottlenecking, and the overall economic growth, more particularly in the cement industry.

Sagar Cements Ltd is currently implementing capacity expansion plan for its plant in Nalgonda district. The capacity will be increased from the current level of 0.65 million tonnes (mt) to 2.5 mt at a cost of Rs 296 crore. The financial closure for this expansion project has been completed. The project is expected to become operational by June 2008.