UltraTech Cement, an Aditya Birla Group company, has reported 24 per cent fall in March quarter net profit at Rs 657 crore (Rs 865 crore), largely due to lower production. Net sales were up five per cent at Rs 6,518 crore (Rs 6,186 crore).
The company’s cement and clinker production were down 11.81 million tonne against 12.81 million tonne in the same period last year.
It has announced a dividend of Rs 9 per share aggregating to total payout of Rs 247 crore, excluding the Rs 50.28 crore corporate tax on dividend payout.
Freight and forward cost increased 8 per cent to Rs 1,472 crore (Rs 1,368 crore) leading to overall expenses rising by four per cent to Rs 5,521 crore (Rs 5,288 crore).
Though there was some relief from softer coal prices, the cost of limestone and other input material remain high, putting pressure on margins, said the company in a statement on Saturday.
Shrenik Gujrathi, Senior Research Analyst, Angel Broking said use of petcoke by the company has gone up to 52 per cent in March quarter from 48 per cent in the December quarter, improving efficiency and bringing down the cost.
Though the cost of operations would come down, the prospects of the company would depend on the revival in demand which is still subdued, he added.
The series of acquisitions and investments in expansion projects resulted in the finance cost shooting up 88 per cent to Rs 160 crore (Rs 85 crore). Tax payout by the company more than doubled to Rs 312 crore (Rs 140 crore) due to additional charge of Rs 50 crore on account of increase in surcharge on income tax.
The company plans to complete the acquisition of two cement plants of 4.9 mtpa from Jaiprakah Associates in Madhya Pradesh by the third quarter of this fiscal. With an enterprise value of Rs 5,325 crore, the plants come with a thermal power capacity of 180 MW.
With the acquisition of Jaypee Cement Corporation plants of 4.8 mtpa in Gujarat last year and brownfield expansion at its existing plants, the company’s production capacity now stands at 60 mtpa, it said.
The company had won Bicharpur coal block in Madhya Pradesh in the e-auction conducted by the Government. The coal block with reserves of 29.12 million tonnes provides fuel security for the company’s plants for 30 years, it said.