UltraTech Cement Q3 sales up marginally; PAT down 18 per cent

UltraTech Cement Ltd, an Aditya Birla Group company, posted net sales of Rs1,652 crore as against Rs.1,631 crore for the quarter ended 31 December 2009.

However, its profit before interest, depreciation and tax (PBIDT) declined by  8 per cent to Rs414 crore from Rs451 crore for the same period last year; further, its profit after tax (PAT) slumped by 18 per cent to Rs196 crore  from Rs238 crore for the three months ended December 2008.

The results are driven by slowdown in demand growth in the southern India markets, which constitute around 30 per cent of the company's sales, the company said in a statement today.

This coincided with the commissioning of new capacities in the Southern regions with a consequent fall in cement prices.

The company sees demand to grow over 10 per cent in the medium term on the back of government initiatives to boost rural development, infrastructure and housing.

However, it is expected that industry will witness a surplus scenario over the next 18 to 24 months resulting in pressure on margins.