The Hindu Business Line : UltraTech net up on firm cement prices

AV Birla group company UltraTech Cement Ltd has posted a net profit of Rs 127 crore for the second quarter ended September 30 against Rs 8 lakh for the corresponding year-ago quarter. Revenues grew 57 per cent to Rs 1,005 crore (Rs 640 crore).

The chief driver for the bottomline growth in the quarter was higher cement prices, which led to a 45 per cent increase in domestic realisation. Export prices increased 14 per cent, said a statement from the company. (The domestic prices were depressed in the corresponding year-ago quarter, volumes lower on account of floods, and production lines affected by maintenance work.)

Higher realisations complemented the substantial sales volume growth of 17 per cent; the company sold 36.81 lakh tonnes (31.45 lakh tonnes) during the quarter. Exports grew 70 per cent overall, cement exports at 2.22 lakh tonnes and clinker at 4.71 lakh tonnes.

UltraTech has earmarked a capital expenditure of Rs 2,698 crore for the next three years, for captive power plants at three locations and a brown-field expansion of 4 million tonnes per annum at Andhra Pradesh.

The board has appointed Mr Saurabh Misra, CEO, as Managing Director, inducting him into the Board. For the period ahead, the cement demand is expected to grow over 9 per cent CAGR, linked to GDP growth of 8 per cent, said the company.

The company's stock slid on Monday, losing 2.03 per cent to Rs 904.15 on the BSE over the previous trading day's close of Rs 885.80.