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UltraTech Cement, an Aditya Birla Group company, has reported 36 per cent increase in third quarter net profit at ₹546 crore (₹400 crore) on the back of higher volume and lower cost.
Sales were up five per cent at ₹6,108 crore (₹5,832 crore).
During the quarter, domestic cement sales volume increased seven per cent to 11.26 million tonnes (10.51 mt), while white cement and wall putty sales was up at 3.38 lakh tonnes (3.17 lt).
While freight cost went up seven per cent at ₹1,407 crore (₹1,320 crore), power bill dipped 12 per cent to ₹1,150 crore (₹1,308 crore).
Deposit refund It received a refund of ₹118 crore deposit made in favour of the Competition Appellate Tribunal in the case related to cement price cartelisation.
The Tribunal recently set aside the Competition Commission of India order levying penalty on leading cement companies and ordered the Commission to hear the case afresh and pass an order soon.
Subsequently, the deposit made by cement companies with the Tribunal was refunded.
Net debt was down by ₹1,000 crore at ₹4,254 crore as the company repaid few high cost loan. Finance cost was down 15 per cent at ₹139 crore. Debt equity was 0.09 per cent.
Speaking to BusinessLine , Atul Daga, Chief Financial Officer, said the company prepaid high cost debt using the surplus cash generated from the business for optimal utilisation of available resources and bring down the finance cost.
Deal with Jaiprakash “We would be raising ₹4,500 crore once the deal with Jaiprakash Associates to acquire their cement units at Bela and Siddhi in Madhya Pradesh is sealed,” he said.
It is waiting for the government to amend the Mines and Mineral Development Act, which will enable transfer of limestone mines along with the deal.
Average realisation was down four per cent at ₹243 per 50-kg bag.
The capacity utilisation during the quarter was at 72 per cent.
On a standalone basis, net profit in the third quarter was up 40 per cent to ₹509 crore (₹364 crore), while sales stood at ₹5,747 crore against ₹5,488 crore logged in the same period last year.
The company is expected to commission two grinding units of 1.6 mtpa each with an investment of ₹800 crore in Bihar and Maharashtra by March.
Shares of the company were down one per cent at ₹2,615 on Wednesday.
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