Ultratech reports consolidated Q2 net profit of Rs628 crore

Aditya Birla Group company UltraTech Cement Limited today reported a consolidated net profit (after tax) of Rs628 crore against Rs669 crore in the year-ago quarter. Profit before interest, depreciation and taxes (PBIDT) stood at Rs1,264 crore.

Consolidated revenue for the fiscal first quarter increased by 13 per cent to Rs5,989 crore.

Net sales stood at RS5,989 crore during the April-June 2014-15 quarter, compared to Rs5,272 crore in the corresponding period of the previous year.

The combined cement and clinker sales was 11.70 million tonnes (10.08 million tonnes) while it was 2.57 lakh tonnes (2.50 lakh tonnes) for white cement and wall care putty.

During the quarter, domestic cement sales volume improved by 14 per cent over the corresponding period in FY14.

However, prices continued to remain under pressure. Variable cost increased by 3 per cent mainly on account of increase in prices of petcoke and input material.

During the quarter, the company completed the acquisition of the Gujarat units of Jaypee Cement Corporation Limited comprising of an integrated unit at Sewagram and a grinding unit at Wanakbori with a combined capacity of 4.8 mtpa. With this acquisition the cement capacity of the company stands at 58.8 mtpa in India.

The company's on-going capex are on track. During the quarter, the company commissioned a 25MW thermal power plant at Rajashree Cement, Karnataka and a 6.5 MW Waste Heat Recovery system at Awarpur, Maharashtra. With this the total power capacity of the company (including WHRS) stands at 709 MW. This caters to around 80 per cent of the company's power requirement.

Cement demand is slated to grow around 7-8 per cent, with expected double digit growth in the second half of the current fiscal. The key value drivers will be renewed government focus on housing and infrastructure spending.