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UltraTech Cement Ltd , an Aditya Birla Group company, has reported a 91 per cent increase in Q1 FY20 net profit at ₹1,208 crore, against ₹631 crore in the same period last year on better realisation and lower operational cost.
Net sales were up 15 per cent at ₹10,027 crore (₹8,720 crore) despite the sales volume being flat. Sales were up just 2 per cent at 17.86 million tonne (17.48 mt) due to depressed demand.
Earnings before interest, tax, depreciation and amortisation was up 63 per cent at ₹2,652 crore (₹1,624 crore). Expenses on logistics, which account for 32 per cent of the overall cost, were down 5 per cent at ₹1,140 a tonne due to lower diesel prices and revised axle norms. Similarly, energy and raw material costs were down 2 per cent each to ₹1,011 a tonne and ₹489 a tonne respectively due to lower energy consumption and procurement source optimisation, said the company.
The logistics cost would have reduced further if the availability of railway wagons had improved. The share of dispatches through railways was down to 21 per cent.
Overall, cost reduction improved the realisation to ₹251 per 50 kg bag (₹221 per bag).
The company has managed to turn around the 21.2 mtpa Jaypee Cement asset acquired in 2017 and achieve a breakeven at the operational level, it said.
The Bara grinding unit is schedule for commissioning in the third quarter of this fiscal after a delay in the project, it added.
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