UltraTech 3Q revenues rise 5%

UltraTech 3Q revenues rise 5%
20 January 2016

Indian cement major UltraTech Cement reported five per cent revenue growth for the 3QFY15-16, driven by seven per cent volume growth while the cement pricing environment remained subdued.
During the September-December 2015 period, consolidated net sales increased to INR61.08bn (US$898m) versus INR58.32bn in the corresponding period of the previous year. EBIT stood at INR12.45bn, up by 18 per cent YoY from INR10.58bn. Profit after tax soared by 36 per cent compared to last year (INR5.46bn).

On a standalone basis net sales stood at INR57.47bn compared to INR54.88bn in the corresponding period of the previous year. Net profit was INR5.09bn versus INR3.64bn a year earlier.

During the quarter, domestic cement sales reached 11.26Mt versus 10.51Mt a year earlier. Though cement prices remained subdued, the encouraging quarterly performance was driven by operational efficiencies, improvements to the fuel mix and lower energy costs – all of which resulted in lower operating costs. However, this was partially offset by an increase in costs due to the District Mineral Foundation levy in terms of the provisions of the Mines and Minerals (Development) Amendment Act, 2015 and amendment to the Payment of Bonus Act.

On its outlook, the company said domestic demand for cement is expected to pick up in the near term. "The Governments' focus on infrastructure development, housing sector, smart cities, roads, etc augurs well for UltraTech. The company is confident of meeting the upsurge in demand and participating proactively in the next phase of growth in the country," said a statement by the cement producer.

Published under Cement News

Tagged Under: Results UltraTech Cement