KCP surges on capacity expansion

KCP has decided to expand the production capacity of its cement unit located at Muktyala, Krishna District in Andhra Pradesh. The company’s manufacturing capacity at this plant will increase from 1.8 MTPA to 3.5 MTPA. It will invest about Rs 400 crore for the expansion of manufacturing facility.

KCP has earned about 52.2 per cent amounting to Rs 766 crore from cement segment during FY16. The company’s cement business has increased by 20.33 per cent in FY16 on a yearly basis. Its cement segment PBT stands at Rs 110.51 crore in FY16.

On the financial front, KCP’s revenue has increased by 9.18 per cent to Rs 1296 crore in FY16 as compared to previous financial year. The company’s EBITDA too has boosted by 42.17 per cent to Rs 237 crore in FY16 on a yearly basis. Its net profit also has risen by 85.4 per cent to Rs 93.35 crore in FY16 as compared to previous fiscal year.

The share price of KCP has increased by 6.07 per cent on bourses in early trades; and is trading at Rs 92 on an intraday basis.

KCP is engaged in cement, power, sugar, information technology (IT) and heavy engineering businesses. The company's segments are Engineering, Cement, Power, Sugar and Others. It has 9 manufacturing locations over various geographies in India and Vietnam.