Ultratech FY net profit up on revenues

Ultratech FY net profit up on revenues
Published: 23 April 2008

Ultratech Cement Ltd. reported a higher full-year net profit and said continuous government intervention has resulted in an uncertain price environment, which together with a significant increase in input costs will have an adverse impact on its margins in the current year.

For the year to March, net profit rose to INR10.08bn from INR7.82bn last year, while revenues, including sales, rose to 55.09 billion rupees from INR49.11bn.

Overall cement demand in the country is expected to grow by nine per cent during the current fiscal year, the Aditya Birla Group company said.

Ultratech said during the full-year period, variable cost increased by over eight per cent due to an escalation in the cost of raw materials, mounting freight charges and the cost of imported coal.

Ultratech said the government’s ban on exporting cement will have also an impact on its export revenues but it plans to increase its domestic volume to compensate. It said it sees good opportunities in the ready-mix concrete business and will set up additional plants. The company currently has 15 ready-mix concrete plants across the country.