The shares of India’s third largest cement manufacturer plunges 5 percent in the day’s trade after it received gst claims worth Rs. 4,000 Crores from the Income tax department for wrongful claims made by the company.
At 1:25 the shares of Shree Cement Limited were trading at Rs. 27,100, down 4.44 percent from its previous day’s close price of Rs. 28,357.90 and its market capitalization is Rs. 97,735 Crores.
The Income Tax department has made a claim of Rs. 4,000 Crores from Shree Cements Limited because as per IT departments survey shree cements has made wrongful IT claims of Rs. 8,500 Crores from April 2014 to March 2023.
This was followed by the survey conducted by the IT department at five locations of the company in June 2023 in connection with the deductions claimed under section 80IA of the Income Tax Act for the April 2014 to March 2023 period.
Shree Cement Limited is the third largest cement manufacturer in India, engaged in the business of manufacturing and selling of cement and cement related products under the brand names like bangur, rock strong cement and many more.
The company’s revenue from operations grew 18.94 percent from Rs. 15,009.56 Crores in FY22 to Rs. 17,852.33 Crores in FY23, accompanied by profits of Rs. 2,331.94 Crores to Rs. 1,270.7 Crores.
It has reported a return on equity (ROE) of 7.03 percent and a return on capital employed (ROCE) of 8.65 percent, it is making decent returns on its equity and capital employed as its net profit fell 45.51 percent this year due to the increase in fuel and power expenses.
According to the latest shareholding data available for the quarter ended September 2023, the company’s Promoters hold 62.55 percent stake, the Foreign Institutional Investors (FII) hold 12.22 percent and the Domestic Institutional Investors hold 12.25 percent.
Written by: Bharath K.S
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