The Hindu Business Line : UltraTech Q3 profit up 32% at Rs 279 cr

Mumbai, Jan. 19 UltraTech Cement Ltd, an Aditya Birla Group Company, has reported a 32 per cent jump in net profit, to Rs 279 crore (Rs 212 crore) for the third quarter ended December 31.

Net sales grew 10 per cent at Rs 1,382 crore (Rs 1,260 crore). Sales from ready mix concrete accounted for around five per cent of the turnover.

Production at Ultratech during the quarter was nearly flat at 3.60 million tonnes (3.59 mt). Effective capacity utilisation was around 102 per cent. Domestic cement sales registered a growth of six per cent in volume terms, from 3.21 mt to 3.40 mt.

“The increase in variable cost per tonne was restricted to 4 per cent as a result of improved production efficiencies. This was despite nine per cent higher energy costs, primarily due to escalating coal prices,” the company said in a statement.

UltraTech has earmarked a capex of around Rs 3,300 crore over the next three years for expansions, setting up of captive power plants and de-bottlenecking. Of these, capacity expansion at its unit in Andhra Pradesh and the first phase of the captive power plant at its Gujarat unit are expected to be commissioned this quarter.

The cement industry has announced additional capacities of around 90 million tonnes, expected to be commissioned over the next three years. “These could result in a surplus scenario thereby putting pressure on prices from end FY09. However, the demand for cement is expected to grow around 10 per cent linked to GDP growth,” the company said.