Coal news and updates

Sagar Cements   shares hit 20 percent upper circuit at Rs 530.20 on Friday after strong cement sales data in March. There were pending buy orders of 10,677 shares, with no sellers available on BSE, at 12:22 hours IST. 

The Hyderabad-based cement company said its cement production in March grew by 42 percent to 2 lakh tonnes compared to year ago period with Telangana sales rising 119 percent and Andhra Pradesh 135 percent. 

These two states contributed more than 50 percent to sales. The growth in cement business of the company through these two states may be because of lot of infrastructure opportunities available after Telangana separated from Andhra Pradesh. 

However, Karnataka & Tamil Nadu sales declined 47 percent and 36 percent, respectively. Maharashtra and Orissa sales also degrew by 6 percent and 18 percent year-on-year, it added. Its subsidiary BMM Cements also recorded strong production and sales growth in March, saying cement production increased substantially to 45,470 tonnes from 450 tonnes in same month last year. 

Sales growth in Andhra Pradesh, Karnataka and Tamilnadu was also strong at 591 percent, 1491 percent and 778 percent, respectively. BMM Cements, a wholly owned subsidiary of the company, has a very strong presence in Andhra Pradesh and Telangana. "Andhra Pradesh and Telangana put together, more than 52-53 percent to be precise including the sales figure of BMM Cements. On month-on-month basis for March, they have sold 2.4 lakh tonnes of cements, against 1.7 lakh tonnes, a growth of 37 percent. Even if we take Q4, they have sold 6.08 lakh tonne which is again a growth of 56 percent. In similar quarter last year, they have sold cement of 3.9 lakh tonne. So, growth of 56 percent quarter-on-quarter (Q-o-Q) and 20 percent Y-o-Y," SP Tulsian of sptulsian.com explained. 

Source:Moneycontrol