UltraTech first quarter profit falls 5.5%

UltraTech Cement's first quarter standalone net profit fell 5.5 per cent YoY to INR591 crore. The Aditya Birla Group firm had posted net profit of INR628 crore in the year-ago period.

Cement and clinker sales during the quarter ended 30 June 2015 climbed six per cent to 12.14Mt from 11.7Mt a year earlier.

Energy costs improved by seven per cent but the reduction in fuel prices was partly offset by an increase in rail freight expenses. Input prices remained stable except for the rise in royalty on limestone and levies under the Mines and Mineral (Development and Regulation) Amendment Act, 2015.

On a consolidated basis, net sales increased to INR6372 crore from INR5989 crore a year earlier. PBIDT was INR1282 crore from INR1296 crore, while profit after tax fell to INR591 crore (INR628 crore).

Corporate developments and investments
The acquisition of a Jaiprakash Associates Ltd’s cement units situated in Bela and Sidhi in Madhya Pradesh has been approved by shareholders and creditors of the company. These plants have a combined capacity of 4.9Mta, together with a thermal power generation capacity of 180MW. The deal, which has also been given the green light by the Competition Commission of India, is now subject to approval from the high courts and all regulatory approvals. 

During the quarter, UltraTech commissioned a 15MW waste heat recovery system, taking its total waste heat power generation capacity to 48MW.

Outlook
UltraTech said that with the Government's focus on infrastructure development, housing sector, smart cities, roads etc, the company is positioned across India "to meet the expected rise in demand and participate in the next phase of growth in the country."