Sagar Cements shares surge 10 percent high due to Q1 profits

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Sagar Cements shares surge 10 percent high due to Q1 profits
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Shares of Sagar Cements Ltd., a mid sized maker of the commodity, surged more than 10 percent after the company swung to a quarterly profit on the back of lower fuel and power costs.

Sagar Cements said its first quarter profit stood at 22.7 crore rupees versus a loss of 8.6 crore rupees in the year ago quarter. Sales for April-to-June rose 44 percent to 195 crore rupees from 135 crore rupees in the year ago period. The company's fuel and power costs fell to 43.6 crore rupees against 58.8 crore rupees in the two comparative periods.

As a consequence, Sagar Cements surged 10.1 percent, or 46 rupees, to 498 rupees on the National Stock Exchange, where 37,500 shares changed hands in the first 1.15 hours of trade compared with a 5-day average of 19,300 shares.

The market capitalisation of Sagar Cements has risen 32 percent in one year to 782 crore rupees as investors sought to buy into regional cement players with a strong market presence rather than front line cement stocks with a national footprint.

(Image credits: Indiatimes)