UltraTech Q2 net profit almost doubles

UltraTech Cement Ltd, an Aditya Birla Group company, today said its net profit jumped to Rs 550 crore in the second quarter of the current fiscal as compared to Rs 279 crore in the same period last fiscal.

The company's net sales stood higher at Rs 4,700 crore compared to Rs 3,908 crore in the corresponding period of the previous fiscal, a company statement said here.

Its profit before interest, depreciation and tax also zoomed to Rs 1,076 crore against Rs 684 crore in the second quarter of the last financial year.

The combined domestic cement and clinker sales was 9.06 million tonnes compared to 8.94 million tonnes in Q2 of FY12.

The variable cost rose by 8 per cent in the reported period as compared to corresponding period last fiscal. This was mainly on account of higher raw material prices which are linked to the last increase in railway freight and increase in diesel prices. The benefit of softening in prices of imported coal was partly offset by the depreciation in rupee, the release said. The company's initiative towards setting up additional clinkerisation plants at Chhattisgarh and Karnataka are progressing on schedule. These are expected to be operational from early FY14. Consequently, the company's cement capacity will be enhanced by 10.2 mtpa, it said.

Commenting on the outlook, the company said the cement demand is likely to grow over 8 per cent linked to the government's focus on infrastructure development. However, the surplus scenario is expected to continue over the next three years, it added.

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