Ultratech Cement's Q3 net down 38.4% at Rs370 crore
20 January 2014
Aditya Birla Group company Ultratech Cement has reported a 38.43 per cent dip in net profit for the October-December quarter of the current financial year (2013-14) at Rs370 crore, amidst poor demand and a consequent decline in the selling prices of the building material.
Ultratech had reported a net profit of Rs601 crore in the corresponding quarter of the previous financial year, the company said in a release.
Net sales of the company also stood lower at Rs4,786 crore against sales of Rs4,857 crore in the corresponding period of the previous year.
Total expenses increased to Rs4,267 crore from Rs4,072 crore. Freight costs rose to Rs1,119 crore from Rs1,059 crore and finance costs went up to Rs90 crore from Rs52 crore.
Profit before interest, depreciation and tax stood at Rs864 crore and profit after tax at Rs370 crores vis-a-vis Rs1,145 crore and Rs601 crore, respectively, in the corresponding period of the earlier year.
The combined domestic cement and clinker sales remained flat at 9.7 million tonnes while sales of white cement and wall care putty stood at 2.89LmT (2.62LmT) during the period.
Ultratech said its results for the quarter have been impacted mainly on account of lower selling prices caused by the subdued demand. However, ongoing cost optimisation measures have helped in containing costs despite the continuing increase in input and logistics cost, it added.
The company expects demand growth in the long term to be around 8 per cent, with key demand coming from housing and infrastructure spends.