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Sagar Cements' stock climbed 6.54 per cent to end at Rs 146.60 on the BSE on Tuesday, as the company posted over five-fold increase in net profit.
Its net profit increased to Rs 17.6 crore in the third quarter ended December 31, 2011, compared with Rs 3 crore in the corresponding quarter of previous year.
The total income of the Hyderabad-based company increased by 43 per cent at Rs 161 crore (Rs 112 cr).
“Cement prices in Andhra Pradesh have held up well during the quarter. We continue to have a healthy balance sheet and our low debt to equity places us too well in the future,'' Mr Sreekanth Reddy, Executive Director, Sagar Cements Ltd, said in a release.
Higher production
The earnings per share stood at Rs 10.15 compared with Rs 2.07 in the year-ago period.
During the quarter, company's plant operated at utilisation levels of around 60 per cent, producing over 4.46 lakh tonnes of clinker and 3.80 lakh tonnes of cement.
The production was higher by about 44 per cent during the quarter compared with the corresponding quarter.
About 48 per cent of cement dispatches went to markets outside Andhra Pradesh, including those in Orissa, Karnataka, Tamil Nadu and Maharashtra.
Other cement stocks such as ACC, UltraTech Cement, India Cements, JK Lakshmi Cement, Madras Cements and Shree Cement also scored handsome gains.
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