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UltraTech Cement, an Aditya Birla Group company, has reported that its net profit almost doubled in the September quarter to Rs 550 crore against Rs 279 crore recorded in the same period last year.
Net sales increased by 20 per cent to Rs 4,700 crore (Rs 3,908 crore). Sales were up one per cent at 9.06 million tonnes (8.94 mt), while white cement and wall care putty sales increased 13 per cent to 2.39 lakh tonnes.
UltraTech Cement’s close competitor Holcim Group-owned ACC and Ambuja Cement also reported an encouraging performance on Thursday. The delay in onset of South-West Monsoon this year helped most companies sustain sales and pass on incremental cost to end consumers.
The sharp rise in UltraTech’s net profit was largely due to higher realisation and lower base last year. The timely arrival of monsoon last year depressed cement demand, leading to dismal financial performance of cement companies.
The overall expenses increased 11 per cent to Rs 3,925 crore (Rs 3,547 crore) with spike in power, fuel and freight costs. .
The sharp depreciation of the rupee against dollar, mark-up in diesel prices and freight charges by the railways had almost negated the benefit of lower international coal prices during the quarter, the company said.
Pressure on cost
On a sequential basis, the company’s net profit and sales were down substantially reflecting the rising pressure on cost. Net profit was down 29 per cent compared to the June quarter, while sales dipped seven per cent. The company produced 9.94 mt of cement and 2.25 lt of white cement and wall putty in the June quarter.
The company’s shares on the BSE were down two per cent at Rs 2,010 on Friday.
> suresh.iyengar@thehindu.co.in
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