India: Shree Cement has reported a rise of 74% in its net profit to US$21.2m for the fourth quarter of the financial year 2011-12, which ended on 31 March 2012, compared to US$12.2m for the same period of 2010-11.

Shree's net sales rose by 43% to US$289m for the quarter, compared to US$203m in 2011. For the full financial year the company reported a rise of 27.3% in its standalone un-audited net profit to US$50m, compared to US$39m in the previous financial year. Net sales for the company also increased by over 31% to US$884m in 2012 compared to US$676m in 2011.

HM Bangur, managing director of Shree Cement, attributed the jump in profits to better capacity utilisation, increased sales and increases in other income streams thanks to legal action ruling in the company's favour. "Our capacity utilisation has been much better. In the fourth quarter of 2012 compared to the same period in 2011, cement sales increased by 30% in volumetric terms and instead of 25.7Mt, we have sold 33.5Mt," he explained.

Bangur expects growth to slow down in the financial year 2012-13 and he is optimistic about the surge in the sale of power. "The pace will definitely slowdown because the 30% growth rate is not easy to maintain. I expect the cement market to grow by 9% and the company to grow by 12% in volume terms." In the 2012-13 period Shree Cements forecasts that it will increase its capacity by 12.5-13Mt.

Bangur added that claims of cartelisation in the cement sector were unfounded and that the forthcoming judgement by the Competition Commission of India (CCI) on its investigation into the sector are eagerly expected.