UltraTech Cement has reported 15 per cent increase in consolidated June quarter net profit at Rs 898 crore against Rs 780 crore logged in same period last year on the back of better realisation and higher volume.
Revenue were up six per cent at Rs 7,928 crore (Rs 7,452 crore).
Profit before interest, depreciation and tax was up 18 per cent at Rs 1,328 crore (Rs 1,124 crore) in the corresponding period of the previous year despite increasing cost trends, primarily due to energy and logistics cost on account of increase in fuel prices, said the company in a statement on Tuesday.
Overall expenses were up four per cent at Rs 6,767 crore (Rs 6,480 crore) with 33 per cent increase in power and fuel bill at Rs 1,319 crore (Rs 989 crore) and two per cent rise in freight cost at Rs 1,596 crore (Rs 1,562 crore).
Kumar Mangalam Birla, Chairman, UltraTech Cement said the freight cost would come down with the roll out of GST.
Though GST is a pass through, he said, the overall tax implication on cement sector would come down to 28 per cent from the current level of 30-32 per cent.
On a standalone basis, net profit was up 15 per cent at Rs 891 crore while revenue increased to Rs 7,520 crore (Rs 7,095 crore).
The Governments’ focus on infrastructure development, affordable housing, smart cities and Swachh Bharat Abhiyan, among others is expected to strengthen cement demand and reduce oversupply, which portends well for the sector, said Birla.
UltraTech’s presence across the country will enable it to support and participate in the economic growth agenda of the Government, he said.
Shares of the company were down 0.74 per cent at Rs 4,315 on Tuesday.