UltraTech Cement’s net profit for the third quarter of the fiscal soared to Rs 212 crore from Rs 24 crore a year earlier. The steep rise in net profit was due to higher sales volumes, higher realisations, and better management of energy costs, said Mr K.C. Birla, Executive President and Chief Financial Officer of the company.
It was also in part due to the inclusion of the results of Narmada Cement Company Ltd, which were not taken into account a year earlier. This makes the year-on-year results not strictly comparable, said a statement from the company.
at Rs 1260 crore recorded a rise of 60 per cent as sales volumes rose 15 per and net realisations 48 per cent (at Rs 3020 per tonne of cement from Rs 2040 per tonne)
Sales volumes amounted to 44.96 lakh metric tonnes (39.24 lmt) during the quarter; production rose to 36.36 lmt of clinker (35.26 lmt) and 35.87 lmt (33.23 lmt) of cement as capacity utilisation rose to 103 per cent (88 per cent).
Exports volumes rose 45 per cent, while export realisations improved by 6 per cent, despite a 2 per cent appreciation of the rupee, said Mr Birla.
Operating profit rose by 239 per cent to Rs 397 crore (Rs 117 crore).
"We were able to keep variable cost increase contained at 5 per cent," said Mr Birla.