Ultratech Cement has reported net sales of Rs 1022 crore for the quarter ended 31 March, ’06 as against Rs 698 crore for the corresponding quarter in the previous year. The company has indicated that this equates to an effective increase of 31 per cent, after adjusting for the freight and trading sales impact.
The company’s bottomline has skyrocketed 1,540 per cent on a low base. Net profit increased from Rs 5 crore to Rs 82 crore. While operating profit stood at Rs 199 crore (Rs 113 crore), interest payments were at Rs 22 crore (Rs 26 crore) and depreciation was at Rs 55 crore (Rs 51 crore).
DD Rathi, director of Ultratech, told ET that the tax outgo increased this quarter to Rs 40 crore from a credit of Rs 47 crore in the previous quarter. During the period, UltraTech produced 3.69Mt of cement (3.42Mt) operating at maximum capacity. Aggregate sales volumes at 4.50Mt (3.86Mt) was up by 17 per cent.
The company continued to maintain inc reased share of cement in its export mix, cement constituting 60 per cent of exports. The remaining 40 per cent comes from the export of the raw material, clinker. Power and fuel costs rose by over eight per cent during the quarter, mainly on account of increase in petro products pri ces.
Mr Rathi said that the total capex expected in the next 3 years was Rs 1,500 crore, with yearly expenses being around Rs 650 crore. This capex will, among other things, be directed towards improvement in productivity and cost efficiencies. UltraTech w ill amalgamate Narmada Cement Company (NCCL), a subsidiary of the company.
The scheme is now subject to the approval of BIFR, upon receipt of which, shareholders of NCCL will be allotted one equity share of Rs 10 each, credited as fully paid up of the comp any, for every 18 equity shares of Rs 10 each of NCCL.
The company in its guidance for the industry, was very bullish, and expects to grow at over eight per cent during the current fiscal. It said that the various initiatives taken by the government towards housing an d infrastructure development are expected to generate the demand for cement.