UltraTech sees profit growth in 1QFY18

UltraTech sees profit growth in 1QFY18
19 July 2017


UltraTech Cement Ltd, an Aditya Birla Group Company, yesterday announced its unaudited financial results for the quarter ended 30 June, 2017. The results include those of the cement plants of Jaiprakash Associates Ltd (JAL) and Jaypee Cement Corporation Ltd (JCCL) acquired in terms of a Scheme of Arrangement effective 29 June 2017.

Net sales for the period stood at INR69.38bn as compared to INR65.35bn in the corresponding period of the previous year. Profit before interest, depreciation and tax at INR17.98bn was higher by 11 per cent compared to INR16.26bn in the corresponding period of the previous year. Profit after tax rose 15 per cent from INR7.8bn to INR8.97bn in 1QFY18.

This quarter also witnessed increasing cost trends, primarily attributable to energy and logistics cost on account of increase in fuel prices, the company noted.

On a standalone basis, net sales stood at INR65.33bn as compared to INR61.79bn in the corresponding period of the previous year. Profit before interest, depreciation and tax was INR17.25bn  (INR15.73bn) and profit after tax was INR8.91bn (INR7.75bn).

Corporate developments
During the quarter, the company completed the acquisition of the cement plants of Jaiprakash Associates Ltd and Jaypee Cement Corporation Ltd located in the Indian states of Madhya Pradesh, Uttar Pradesh, Himachal Pradesh, Uttarakhand and Andhra Pradesh with a capacity of 21.2Mta. With this acquisition the cement capacity of the UltraTech Cement stands at 93Mta.

Outlook
Going forward, the company believes government spending on infrastructure, rural and affordable housing will be the key demand drivers.

Published under Cement News