Companies

UltraTech profit down 23% on higher input cost

Our Bureau Mumbai | Updated on January 18, 2018

The December quarter witnessed increase in variable costs attributable to rise in pet coke and coal prices. The ban on pet coke usage in some States also adversely impacted performance.

UltraTech Cement, an Aditya Birla Group Company, has reported that its December quarter net profit dropped 23 per cent to ₹456 crore (₹595 crore) on the higher input cost.

Net sales were up 33 per cent at ₹7,897 crore (₹5,927 crore) on increased sales which went up 37 per cent to 15 million tonnes (11 mt).

The company’s capacity utilisation improved marginally to 69 per cent in December quarter compared to 67 per cent in the same period last year.

Its energy cost has increased 28 per cent to ₹949 a tonne and logistics cost was up 33 per cent at ₹1,127 a tonne, while raw material expenses were down 14 per cent at ₹476 a tonne.

The quarter witnessed increase in variable costs attributable to rise in pet coke and coal prices. The ban on pet coke usage in some States also adversely impacted performance.

Despite this, the company registered 18 per cent profit before interest, depreciation and tax during the quarter.

UltraTech Cement has managed to increased the capacity utilisation at the recently acquired JP Cement plants to 60 per cent from 18 per cent at the time of acquisition.

The company has completed launching UltraTech brand in new markets.

Substantial improvements have been carried out at these plants in terms of their operating parameters and appointment of new dealers to establish UltraTech brand in new markets.

The acquisition is generating incremental earnings as planned which are improving month-on-month, it said.

On a standalone basis net profit was down 25 per cent at ₹421 crore (₹563 crore), while net sales increased 34 per cent at ₹7,471 crore (₹5,540 crore).

The company expects higher budget allocation for infrastructure and rural development will be key to drive demand.

Published on January 18, 2018

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