UltraTech Cement, an Aditya Birla group company, has reported 29 per cent increase in June quarter consolidated net profit at Rs 780 crore (Rs 605 crore) on the back of lower input cost and better realisations.

Net sales were up four per cent at Rs 6,538 crore (Rs 6,281 crore).

Overall expenses were down at Rs 5,437 crore (Rs 5,443 crore) largely led by 15 per cent drop in power and fuel cost at Rs 989 crore (Rs 1,168 crore).

Finance cost was up 20 per cent at Rs 180 crore.

Sales volume was up six per cent at 12.57 million tonnes while the cost of production dipped seven per cent to Rs 3,643 a tonne with logistics cost was down six per cent to Rs 1,170 a tonne as Railways removed busy season surcharge of 15 per cent. This apart, the company transported more cement through roads increasing its share to 71 per cent from last year’s level of 61 per as availability of wagons remained a key issue, said UltraTech in a statement on Tuesday.

Earning before interest, tax, depreciation and amortisation per tonne improved 16 per cent to Rs 1,078 from Rs 929 on huge cost saving. UltraTech has secured coal linkage of 82,000 tonnes per annum from an auction conducted in Maharashtra. The coal linkage meets 10 per cent of its Awarpur plant requirement in Maharashtra.

On a standalone basis, the net profit was up 28 per cent at Rs 775 crore (Rs 604 crore) while net sales increased four per cent at Rs 6,182 crore (Rs 5,948 crore).

The company, which has signed a deal to acquire Jaiprakash Cement’s 21 mtpa capacity for an enterprise value of Rs 16,189 crore , will apply for High Court permission next month. The acquisition will enhance UltraTech’s production capacity to 91 million tonnes per annum with fresh production capacities in Madhya Pradesh, Uttar Pradesh, Himachal Pradesh, Uttarakhand and Andhra Pradesh.

On the outlook for this fiscal year, the company said the demand for cement this year is expected to grow by about seven per cent, given the government’s focus on infrastructure, housing, smart cities and roads.

Shares of the company were up 0.18 per cent at Rs 3,506 on Tuesday.

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