UltraTech Cement has reported 14 per cent increase in net profit to Rs 778 crore (Rs 683 crore) in the June quarter, on the back of higher production and better realisation.
The company’s cement and clinker production was up five per cent at 9.94 million tonnes (mt), while that of white cement and wall-care putty jumped 17 per cent to 2.25 lakh tonnes.
Overall expenditure was up 18 per cent at Rs 4,011 crore against Rs 3,386 crore recorded last year. The variable cost rose by 10 per cent mainly due to higher energy cost and other raw material prices.
The recent increase in freight charges by the railways and diesel prices also pushed up operational cost, said the company in a press release on Friday. The company reported other income of Rs 69 crore (Rs 44 crore).
However, since input cost has started to come down, in a major relief to cement producers, UltraTech expenses on a sequential basis is down seven per cent compared with Rs 4,306 crore logged in the March quarter.
The company said it has not made any provision for the penalty of Rs 1,175 crore imposed by the Competition Commission of India (CCI) in the price cartelisation case.
The company’s shares on the BSE were down 0.52 per cent at Rs 1,567 on Friday.