UltraTech Cement Ltd. said on Monday its board had approved additional capital expenditure of 4.9 billion rupees for productivity improvement and cost efficiency. It also approved setting up a captive power plant for 2.7 billion rupees at its Hirmi cement factory in the central state of Chattisgarh. "This is part of the capex plan of 1,520 crore (15.2 billion rupees) which we will spend over the next three years," D. D. Rathi, company director, said.
Earlier, the company reported a 65 per cent jump in quarterly net profit from a year ago to 815 million rupees for the fourth-quarter ended March. A Reuters survey had forecast profit of 684 million. Net sales were up 46 percent from a year ago at 10.22 billion rupees, compared with analysts’ forecast of 9.39 billion. During 2005/06, the company also saw an 11 percent increase in the prices of cement, Rathi said. The company said it sold 4.50Mt of cement during the quarter, up 17 per cent from a year ago.