UltraTech quarterly profit hit by subdued demand

UltraTech Cement, the leading cement producer in India, reported a 38.43 per cent decline in net profit for the last three months of 2013 as sluggish demand leads to a weaker pricing environment.

Net profit during the October-December quarter fell to INR370 crore compared to INR601 crore in the same period of 2012.  Net sales in the three month period also declined marginally to INR4786 crores compared to INR4857 crore in the comparative quarter the year before.

Domestic cement and clinker sales remained flat at 9.7Mt.  The group said that quarterly sales were impacted by lower cement prices due to subdued demand, However, the company said that ongoing cost optimisaiton measures have helped contain costs despite continuing rises in input and logistic costs.

UltraTech expects the outlook to remain challenging. It forecasts demand growth in the long-term to be around eight per cent with housing and infrastructure expected to remain the key drivers.