UltraTech reports 37% volume jump in 3QFY18

UltraTech Cement Ltd, an Aditya Birla Group Company, has announced its unaudited financial results for the quarter ended 31 December 2017 (3QFY18). Net sales stood at INR78,970m (US$1.23bn) as compared to INR59,270m (US$145.4m) in the corresponding period of the previous year, the company statement read.

EBITD was INR14,940m vis-à-vis INR12,800m in the corresponding period of the previous year. Profit after tax was INR4560m as against INR5950m in 3QFY17.

On a standalone basis, net sales stood at INR74,710m as compared to INR55,400m in the corresponding period of the previous year. EBITD was INR14,250m (INR12,100m) and profit after tax was INR4,210m (INR5630m).

The quarter witnessed an increase in variable costs attributable to rising petcoke and coal prices. The ban on petcoke usage in some states also adversely impacted performance. Regardless, the company registered a 18 per cent EBITD growth during the quarter. 

"After successfully launching the 'UltraTech Brand' in all the markets being served from the acquired plants, the operations are in line with the company's ramp-up strategy. Improved capacity utilisation currently touching 60 per cent from a low of 18 per cent at the time of acquisition is encouraging, " said UltraTech Cement. "Substantial improvements have been carried out at these plants in terms of their operating parameters.

"The appointment of new dealers and retailers is an on-going programme to increase the reach of UltraTech in the new markets. The acquisition is generating incremental earnings as planned and which are improving month on month," India's largest cement producer said.

In addition, the expected higher budget allocation for infrastructure and rural development will be key demand drivers, according to UltraTech Cement.