UltraTech Cement, an Aditya Birla Group company, reported a 6per cent drop in consolidated net profit at ₹627 crore (₹666 crore) during the June quarter due to increase in operational and raw material cost.
Net sales realisation in the first quarter was up 14 per cent at ₹5,989 crore (₹5,272 crore).
The combined cement and clinker sales in the quarter was up 16 per cent at 11.70 million tonnes (10.08 mt) while that of white cement sales’ were flat at 2.57 lakh tonnes (2.50 lakh tonnes).
Though sales volume increased, the realisation was lower as the company was not able to pass on the incremental cost due to weak demand. Operational expenses were up 18 per cent at ₹ 5,233 crore (₹4,453 crore). The increase in operational cost was largely due to 21 per cent and 20 per cent rise in power and freight cost at ₹1,291 crore (₹1,070 crore) and ₹1,333 crore (Rs 1,104 crore).
The company net sales and net profit were down when compared on a sequential basis, in a reflection of the continuing stress in the cement sector. On a sequential basis, the company sales were down 3 per cent at ₹5,989 crore against ₹6,187 crore recorded in the March quarter while net profit was down 28 per cent at ₹627 core against ₹865 crore registered in the March quarter.
During the June quarter, UltraTech completed the acquisition of the 4.8 million tonne per annum Gujarat unit of Jaypee Cement Corporation.
Production capacityIts production capacity now stands revised to 58.8 mtpa. The company commissioned 25-MW thermal power plant at Rajashree Cement in Karnataka and 6.5 MW waste heat recovery system at Awarpur in Maharashtra taking its power production capacity to 709 MW, which accounts for 80 per cent its requirement.
On a standalone basis, the net profit was down 7 per cent at ₹627 crore (₹673 crore) even as sales increased 14 per cent at ₹5,649 crore (₹4,959 crore).
The company expects the Government focus on housing and infrastructure to help cement sector register a double digit growth in the second half of this fiscal.