UltraTech Cement, an Aditya Birla Group company, reported that its net profit was down 13 per cent at Rs 673 crore (Rs 778 crore) due to lower sales and drop in cement production. Sales were down two per cent at Rs 4,958 crore (Rs 5,072 crore).
Cement sales were down marginally at 9.88 million tonnes (9.94 mt), while clinker sales were up at 2.50 lakh tonnes (2.26 lt).
The quarter witnessed an increasing trend in raw material costs. Besides, logistics cost also moved up due to the mark up in railway freight and diesel price hike, said the company in a statement.
The benefit of softening imported coal prices was partially set off by the rupee depreciation against the dollar, it added.
The company has deposited Rs 118 crore amounting to 10 per cent of the Rs 1,175-crore penalty levied by the Competition Commission of India last year. The Competition Appellate Tribunal, which is hearing the company’s appeal against the penalty, directed the company to make the deposit.
Fresh investment
The company will invest Rs 2,100 crore to set up grinding units and ready-mix concrete plants in the country, besides modernising existing facilities. With this, the total capital expenditure under implementation will be around Rs 13,700 crore, said UltraTech Cement.
The company targets to increase its total production capacity to 64.45 mt in the next two years, by adding 10 mt to its existing capacity. UltraTech Cement recently commissioned a 3.30-mt clinker plant in Karnataka.
UltraTech expects demand from the housing and infrastructure sector to drive demand in the coming days. In the short-term, it foresees a challenging period with demand growth of six per cent this fiscal.
Shares of the company were up 0.80 per cent at Rs 1,880 crore.