Aditya Birla Group firm Ultratech Cement today posted over two-fold jump in net profit at Rs 279 crore for the second quarter (Q2) ended September 30,2011,on increased sales. The cement maker had reported a net profit of Rs 116 crore in the July-September quarter of the last fiscal. Net sales of the company were up to Rs 3,910 crore during the reporting quarter over Rs 3,215 crore in July-September quarter of last fiscal,it said in a statement. "Although year-on-year performance indicates an improvement on account of a lower base effect,on a sequential basis,the company's performance was subdued,given the lower demand,lower realisation and substantial increase in costs," it said. Ultratech Cement had reported a net profit of Rs 683 crore in the first quarter of the current fiscal on a Rs 4,365 crore net sales. "The overall economic slowdown impacted the company's performance during the quarter. Variable cost rose 14 per cent because of increase in input and energy costs," it said. "The 30 per cent increase in the price of domestic coal,continuous rise in prices of imported coal together with escalation of freight costs due to the diesel price hike have constrained the company's performance," Ultratech added. The company did not paint any rosy picture for the industry as a whole amid continuous oversupply scenario. "The surplus scenario is likely to continue over the next 2-3 years. At the same time,growing input costs will result in a squeeze in margins," it said.
