UltraTech Cement’s net profit in the second quarter of this financial year more than halved to Rs 264 crore over the same period last year. The company attributed this to lower realisation and a drop in demand. Net sales were down 4 per cent at Rs 4,502 crore (Rs 4,699 crore) for the country’s largest cement producer, which has installed capacity of 54 million tonnes per annum.

Cement and clinker sales remained unchanged compared with last year at 9.1 million tonnes while white cement and wall-care putty sales were up 15 per cent at 2.75 lakh tonnes (2.39 lakh tonnes). Despite flat cement sales, overall cost increased 4 per cent to Rs 4,100 crore (Rs 3,927 crore) on the back of high logistics cost. The financial performance during the quarter was impacted by lower selling price and subdued demand, said the Aditya Birla group company in a press release on Saturday. Overall price realisation during the quarter was down 5 per cent at Rs 239 per 50 kg bag compared with Rs 252 in the same period last year.

The demand during the quarter remained sluggish due to prolonged monsoon across the country. This resulted in reduced offtake by infrastructure and real estate companies, said UltraTech. The company’s long-term borrowings stood a tad lower at Rs 3,841 crore (Rs 3,893 crore), while deferred tax liabilities increased 9 per cent to Rs 2,073 crore (Rs 1,906 crore).

The benefit of lower imported coal prices was negated by the sharp depreciation of the rupee against the dollar. Logistics and raw material costs continued to rise given the high diesel prices, the company said. However, optimisation of fuel mix helped curb power and fuel costs to an extent, it added.

During the quarter, the company commissioned a 25 MW power plant at its Rajashree Cement unit in Karnataka.

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