Shares of Shree Digvijay Cement Ltd. ended lower, despite the company approving a proposal to increase its existing cement capacity.

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The company will invest a sum of Rs 250 crore to expand the capacity to 3 million tonnes per annum. The additional capacity is likely to come on stream from October 2024, the company said in a statement.

For the June quarter, the company reported double-digit sales volume growth and revenue growth. Net profit for the period, however, was flat on a year-on-year basis.

Revenue for the period grew by 19.6 percent to Rs 192.8 crore, compared to Rs 161.23 crore in the same period last year.

Shree Digvijay Cement’s sales volume increased by 15 percent from last year to 3.3 lakh tonnes in the June quarter from 2.87 lakh tonnes in the same quarter a year ago.

Operating profit or EBITDA rose to Rs 32.45 crore but remained flat on a year-on-year basis. However, its EBITDA per tonne fell by nearly 13 percent from last year to Rs 9.83 from Rs 11.28.

“Cement industry has witnessed good demand in this quarter, backed by demand in rural & urban areas in all the segments. However, prices remained muted with increased input costs resulting in pressure on margins,” said the company's executive chairman Anil Singhvi.

Shares of Shree Digvijay Cement fell by 1.7 percent to end at Rs 79.35. The stock is still up by 12.5 percent on a year-to-date basis.

First Published:Jul 27, 2023 4:20 PM IST