India’s leading cement producer UltraTech Cement has reported a 14 per cent rise in net profit for the first quarter of the current fiscal (1QFY13) thanks to higher sales and increased prices
The company reported on Friday that net profit rose to IN7.78bn (US$141m) from INR6.83bn in the same corresponding period of the previous year. Sales increased 17 per cent to INR50.75bn compared to INR43.52bn in 1QFY12.
Input costs rose by 10% YoY mainly due to an increase in rail freight and a rise in diesel prices, the company said. It further noted that although imported coal prices softened by around 19 per cent the depreciation of the rupee by 21 per cent offset the benefits. Combined domestic cement and clinker sales reached 9.94Mt.
On the outlook for national cement consumption, the company said: "Cement demand is likely to grow over eight per cent linked to the Government`s focus on infrastructure development. The surplus scenario is expected to continue over the next 3 years. Any rise in input costs will impact margins."