Shree Cement PAT grows 31 per cent, announces acquisition of RHIPL

The Board of directors of Shree Cement approved the proposal to obtain 100 per cent equity stake in Raipur Handling & Infrastructure Private Limited (RHIPL) for an aggregate consideration of Rs. 59 crore in cash.

Raipur Handling & Infrastructure owns and operates railway siding at Village Hathbandh, District Raipur, Chhattisgarh as Private Freight Terminal (PFT).

The company’s management believes that this acquisition will help them in better management of transportation of goods through rail as RHIPL’s railway siding is located near company's cement plant at Baloda Bazar, Chhattisgarh.

This acquisition is subject to approval from railways authorities. The company expects this deal to close in approximately three months.

The company’s revenue for the last quarter of fiscal year 2018 remained flat at Rs. 2,811 crore as compared to Rs. 2,742 crore in corresponding quarter of last year. However, company reported impressive 31 per cent yoy growth in net profit to Rs. 399.24 crore.

Further, the Board of directors have also recommended a final dividend of Rs. 30 per equity share of Rs. 10 each for the year ended March 31, 2018 subject to approval of shareholders.