UltraTech sees 47% rise in net profit

UltraTech sees 47% rise in net profit
20 October 2014

UltraTech Cement reported a 47 per cent YoY increase in its consolidated net profit to INR4.16bn (US$67.9m) for July-September, driven by a strong volume growth of 11 per cent and additional volumes from Jaypee’s cement units acquired last year. In July-September 2013, the company’s net profits reached INR2.83bn. Revenues for the period rose from INR48.49bn in 2013 to INR57.72bn in 2014.

On a stand-alone basis, the Mumbai-based cement producer posted a net profit of INR4.1bn for the quarter, up 55 per cent over the previous year, surpassing analysts’ expectations of INR3.77bn.

"During the quarter, domestic cement sales volume increased by 11 per cent on the back of higher demand and additional volume from the acquired units in Gujarat. Costs were impacted mainly on account of increase in prices of petcoke, input material and royalty on limestone," UltraTech Cement said.

For the half-year ending 30 September, net profit reached INR103.562bn, up 11 per cent from INR93.671bn in the corresponding period of 2013. Net sales and other operating income rose by 17 per cent from INR950.527bn to INR1112.143bn in the period.

The company's on-going capex is on track. UltraTech commissioned a 1.4Mta cement mill at Rajashree Cement, Karnataka, and a 25 MW thermal power plant at Tadipatri, Andhra Pradesh. As a result, the company's total cement capacity in India stands at 60.2Mta  and the total power capacity (including WHRA) at 733MW, which represents around 80 per cent of the company's power needs.

Meanwhile, UltraTech Cement has informed BSE that the Board of Directors of the company at its meeting held on 18 October 2014 thatit has extended the term of appointment of Mr O P Puranmalka, managing director, for a period of one year from 1 April 2015 to 31 March 2016.  Mr Atul Daga was also apointed chief financial officer of the company with effect from 1 December 2014.

Published under Cement News